Jugnoo raises $3 million in Series B funding from Paytm.
New Delhi, India | Red Newswire | ET Bureau | 17 Nov, 2015 11:01 PM IST.
Auto rickshaw aggregator application Jugnoo has raised $3 million in series B funding led by online marketplace Paytm with participation from Freecharge CEO and founder Kunal Shah.
With approximately 3,300 autos empanelled with the company, Jugnoo competes with its bigger rival Ola which has close to 75,000 autos on its platform. The company had raised a Series A funding of $5 million led by Snow Leopard Ventures and Paytm in May, this year.
“Jugnoo is trying to solve a very fundamental problem. Given their grasp of the auto-rickshaw space and their current traction, it just reconfirms that there is a huge potential in aggregating autos,” said Vijay Shekhar Sharma, Founder & CEO of Paytm.
The company is at present operational in 22 cities with a user base of about 1 million. The company plans to venture into 40 new cities by the end of 2015.
The fund raised will be used expand pan-India and streamline processes in new cities, Jugnoo said in a statement. Founded in 2014, by IIT-Delhi graduates Samar Singla and Chinmay Agarwal, Jugnoo aggregates three-wheelers to streamline the daily commute for the urban populace.
“We are one of the fastest growing companies in our market category and plan to use this funding to invest even more heavily to further accelerate our growth,” said Singla.