Over 5 million auto-rickshaws ply in India, and only 30% of them are properly utilized. This leads to a loss not just for the rickshaw drivers, but also for people looking for some affordable means of transportation. Jugnoo was established as a means to solve this problem by helping customers make use of affordable services for their daily needs all on a single platform. Beginning as an auto-rickshaw aggregator, the company revolutionised the way rickshaw service worked in India, and have now branched out into other fields and sectors by launching services such as Meals, Jugnoo Fresh, Menus and even Jugnoo Delivery. Here’s a look at how Jugnoo grew from being a small idea that two IITian’s had to a thriving business.
The Founders
Jugnoo was founded in November 2014 by two IIT-Delhi alumni, Samar Singla and Chinmay Agarwal. Samar always dreamt of becoming an entrepreneur and had already invested in other companies before founding Jugnoo as he hails from a business family. He tried his hand at entrepreneurship with his first venture Prodigy foods and then sold it to start Click Labs. His second outing, which he founded in 2011, with Chinmay as a partner was a profitable marketing automation software that used SaaS technology. While Samar is a physicist by his education, it is business that excites him, and that is why this serial entrepreneur decided to take a risk again with Jugnoo.
Chinmay Agarwal who serves as the Chief Operations Officer at Jugnoo has a BTech in Electrical Engineering from IIT Delhi. Following his graduation, he won the Erasmus Mundus scholarship, and so went on to do his Joint Masters in Advanced Robotics from Ecole, France and the University of Genoa in Italy. He later switched to business, embarking on his first venture, Click Labs with Samar, where he held the position of Chief Technical Officer. At Jugnoo, he wears multiple hats, helping Samar with both the operations and product side of things.
Founding Jugnoo
In 2014, while at Chandigarh, the duo launched Jugnoo at PECFEST and gave people free rides as a part of their marketing strategy. The idea caught on, and soon the pair realised that there was untapped potential in this sector. Samar and Chinmay then began connecting drivers and customers, and soon enough Jugnoo took shape.
One of the toughest challenges they faced initially was getting the rickshaw drivers familiar with the technology they employed. This introduction wasn’t always smooth, as the drivers came from an environment wherein technology wasn’t so well integrated. Hence, it took a lot of time, effort and dedication to explain the process to them, how the layout works, and how it would help them. Convincing the drivers that such a platform would be beneficial to them wasn’t an easy task, because these weren’t people who liked the idea of change. But, the duo persisted, and soon enough, people started seeing the application as a boon that would help improve their accessibility, and that was when the company started taking off.
Leading the Way
Soon enough, Jugnoo started earning a name for itself, and the first big investment came in the form of seed funding, when the company raised USD 1 million through investors such as Junglee Flywheel, BCG Group, Rapportive, and Kirloskar Bros. It followed this up with a Series A funding and was able to raise another USD 5 million. Furthermore, recently they embarked on a Series B funding round which raked in an additional USD 10 million with their main investors being big players such as Paytm and Snow Leopard ventures.
Within the first seven months, Jugnoo had amassed over 80,000 users and was completing over 1,500 transactions a day. They earned 80% of their total revenue from auto-rickshaw deliveries and bookings and was making more than $1,500 a day.
By 2016, Jugnoo had evolved and had branched into various verticals, growing into an end-to-end solution for their customers. The app has continued to grow at over 20% a month and boasts over 5 million registered users and an auto-rickshaw fleet that is 12,000 drivers strong. Jugnoo recently added the facility of UPI payment on their app as a means to promote a cashless economy that the government is pushing. They have also launched products in the B2B market, including the likes of Tookan and Juggernaut.
Unlike other start-ups that rush towards the metros once established, Jugnoo prefers to stay in Tier-II and Tier-III cities, because 80% of India’s population resides in such cities. Today, the company is rapidly growing and employs over 1000 people, across 35 cities and successfully completes more than 50,000 transactions a day. Jugnoo does more than making money for its founders. Rather, it has a social side to it as well, as it helps people get access to affordable transportation, while also uplifting the lives of millions who depend on menial jobs for their survival.
Being a cinephile with a love for all things outdoorsy, Athulya never misses a chance to chase inspiring stories or poke fun at things, even when the subject is herself. Currently pursuing a degree in mechanical engineering, she is someone innately interested in technical and scientific research. Music reviews and op-eds define her as they allow her to explore different perspectives. Though sometimes she thinks she makes more sense playing the guitar than she does while writing.