SoCoMo Technologies Pvt. Ltd, which operates Jugnoo, a hyper-local online marketplace that facilitates auto-rickshaw rides and food and grocery deliveries through auto-rickshaws, has raised $10 million in Series B funding led by mobile payments and commerce platform Paytm (One97 Communications Pvt. Ltd).
Apart from Paytm, which invested $5 million, existing investor Snow Leopard and Rocketship.vc, a new investor, also participated.
“We will invest these funds in improving our driver efficiency and increasing our numbers in cities where we are currently in the growing phase. And with the kind of impact we have been able to make at the grass-roots, I am sure we have a long way to go,” said Samar Singla, CEO and co-founder of Jugnoo in a statement on Monday.
As part of the Series B1 round, Jugnoo raised $3 million in the first tranche in November 2015 and $2.5 million in the second tranche in January, completing the $5.5 million investment in the round.
Launched in November 2014, Jugnoo was founded by Samar Singla and Chinmay Aggarwal. It is now present in 29 cities and claims to have a user base of 120 million. The Chandigarh-based firm raised $5 million in Series A funding from Snow Leopard Technology Ventures and Paytm in July last year. Other investors in the company include Rakesh Mathur, CEO of Flywheel and co-founder of Junglee (acquired by Amazon.in), actor Saumya Tandon, angel investor Vikas Taneja and Just Weil, an investor in Facebook and Yandex-who participated in earlier rounds.
“Their (Jugnoo) auto hailing service has picked up phenomenally well and they are witnessing incredible growth MoM (month-over-month) basis. With further infusion of funds, Jugnoo will be equipped to scale up its operations across the country and Paytm is happy to be a part of its growth story,” said Kiran Vasireddy, senior vice-president, Paytm, in a statement.
Jugnoo has a network of around 10,000 auto-rickshaw drivers across India that is growing at a steady rate.
They also have women auto drivers in Nagpur, Ahmedabad and Noida.