Jugnoo parent reports R11-cr loss in 2015-16

New Delhi, July 5: SoCoMo Technologies, which runs auto-rickshaw aggregration service Jugnoo and hyperlocal Fata fat reported a loss of R11.49 crore in 2015-16 on the back of revenues of R10.76 crore. The company which started operations in November 2014, operatesin36citiesplying12,000auto-rickshaws.

The company clocks 42,000 bookings per day, charging drivers a 10% commission per ride. On an average auto-rickshaw drivers earn R65 per ride.

“The idea is not to have a high burn rate and develop the business.We will better our services by providing reliable rides at a right price,” Samar Singla, co-founder and CEO of Jugnoo told FE.

Singla plans to expand Jugnoo's presence to 100 cities by end of this year.

In the auto-rickshaw aggregation space, Jugnoo competes with the likes of Ola Autos, mGaadi, Tele Rick shawand Autowale amongst others. With most of the players focusing on price as a factor, reaching profitability has become a big challenge. Singla however says the Jugnoo is not competing with the rest and is entering those markets where there is no competition. “Compared to an Ola Cabs which burns close to $2 million a day, we spend that kind of money in six months,” explained Singla.

At the same time, Singla is looking at expanding the presence of the hyperlocal grocery delivery business, Fatafat as well as the B2B logistics company Dodo. Currently both the services are only active in Chandigarh. “The plan is to launch both the services in Gurugram (earlier Gurgaon) and Delhi. Post which, we plan to cover 30 cities by December 2016,” added Singla.

In Chandigarh, Fatafat clocks 150 per day. On an average value of an order is R1,500 with Fatafat earning a 30% commission. While Dodo, the B2B delivery arm of thecompany generates 300 orders a day. The company on an average claims to earn R70 from per order. Last March, Jugnoo launched the Fatafat service which continued for about eight months till October, before it was shut down. The service was re-launched once again in May this year.

In June this year, SoCoMo Technologie sacquired Chandigarh based online store for fresh quality fruits and vegetable, SabKuchFresh, is also looking at similar acquisitions in other cities.

When asked about the high rate of shutdown in the online grocery and food delivery space, Singla said, “While bigger companies such as OlaCabs lost focus with Ola Cafe and hence shut it down, the biggest challenge for other e-grocery players was to create their own logistic service.