Three segments i.E. Hyperlocal shipping, meals shipping and car booking have been making a whole lot of buzz inside the Indian startup environment seeing that past few months. Startup in each of those phase have now not only been released but have additionally raised large funding rounds. The market length that those segments provide had been the principal motive for sudden uptake. Chandigarh-based totally Jugnoo is one startup which is trying to tap a majority of these 3 segments via the usage of vehicle rickshaws.
Jugnoo is a hyperlocal market to provide the entirety on-demand the use of auto rickshaws as a logistics engine for A2B transport and Value Added Deliveries. “We purpose to make use of automobile rickshaws as logistic partners as they are to be had without difficulty, are faster and cheaper mode and in abundance in towns. They are the vehicles of masses – supporting acquire economies of scale by means of providing less expensive however rapid delivery,” says Samar Singla, CEO and founder.
The startup presently focused on the above noted 3 segments by way of utilising vehicle and has launched apps to manage a majority of these Jugnoo (Nov 2014), Jugnoo Meals (Feb 2015) and Jugnoo Fatafat (April 2015).
Jugnoo helps you to e-book an auto at once or time table a select up for later that is a $10 Bn marketplace.
Jugnoo Meals offers sparkling, home-cooked low cost meals at the doorstep, that's a $20 Bn marketplace.
Jugnoo Fatafat, shall we customers order something from anywhere free of charge. The excellent part of Jugnoo Fatafat is its custom order function, in which in case you can’t discover the shop you're seeking out, you may simply vicinity a custom order and it takes care of the rest. On-demand delivery is a $340 Bn market, which includes shipping of groceries and different goods.
Jugnoo has closed a seed round of $1 Mn from Rakesh Mathur (Junglee, Flywheel), Vikas Taneja (previous investments in Rapportive, PubNub, etc.) earlier this month.
On-demand shipping market is going to bring the following huge disruption in the ecommerce phase. With everything set in area, the player who solves this piece goes to come out as a winner. There are a number of startups on this space which have attracted funding in previous couple of weeks which include Grofers, PepperTap, ZopNow, amongst others.
On the other side, automobile booking is a phase which has also attracted a number of interest after Ola had added automobile reserving on its platform. Uber and Taxiforsure additionally aggregates car for client booking. Few months back, some other startup Chalogekya had additionally raised investment and has simply released their app.
Jugnoo app for auto booking competes with the above said apps. “I don’t see Ola and Uber as opposition, however in reality as a potential companion to Jugnoo due to our hyper local trade version and availability of extra inventory,” he said. On the other facet, players like ZopNow and Grofers can be ability partners for Jugnoo in on-demand transport and agencies like foodpanda, Tinyowl and Zomato in food transport.
Samar similarly explained that Foodpanda and Zomato are ordinarily offering a technical platform for the restaurants where they select delivery being performed by means of the restaurant itself. But recently, foodpanda has started out making food shipping on behalf of eating places. To optimize on transport logistics, all such gamers can no sincerely partner with Jugnoo for their deliveries.
On the other facet, he says, “Ola and Uber could have a natural inclination to push their cab services beyond simply automobiles because of the price tag size. This makes the car drivers experience insecure with such services. We have had a few cases in which Ola automobile drivers have come to us as they sense threatened working with them. With an ongoing consistent worry amongst vehicles that cabs are consuming their market proportion, Ola and Uber will find it higher to partner with us in preference to coping with vehicles themselves.,”
Average price tag size for auto rides is INR 80 (10% commission per transaction) and for on-demand transport is INR 450. With addition of more and more categories, this number will increase up to at least one.5x, per the business enterprise.
Jugnoo has about 70k+ users, over 1,200 Transactions are accomplished on daily foundation, and has had 72,104 Total Transactions performed so far the use of the platform.
The startup is earning $1,510+ in Daily Revenue and currently receives 80% of sales from car bookings and relaxation from the shipping.
The auto reserving provider is currently available in four towns i.E. Chandigarh, Ludhiana, Amritsar, and Jaipur (and launching one more metropolis quickly) however shipping is presently most effective available in Chandigarh. With release of delivery carrier in different cities the startup foresees the sales ratio from shipping offerings going upwards.
The maximum ordered merchandise typically come from restaurant deliveries and home cooked food, followed through groceries. “People have already began waiting for greater in phrases of provider or even soliciting for experts on our app,” said the business enterprise.
Average delivery time varies between 20 to 40 minutes, which additionally consists of the instruction time by way of the store from which order must be picked up. The organisation already has secured relationships with a hundred merchants and earns a commission that varies from 10% – 25% relying at the commodities they offer.
Currently, the Jugnoo is not focusing an awful lot at the earnings margins however alternatively on providing great carrier and expanding speedy. “Margins is a bit in order to come subsequently. Merchants are already approaching-board themselves to get related to Jugnoo – I am certain getting profit margins would be an smooth project,” he introduced.
Chinmay Aggarwal & Samar Singla
The organisation down the road is aiming to emerge as the most important on-call for carrier in India within the next five years, in which customers will be able to find whatever and everything. The company has a robust focus on product, which is likewise the middle foundation of what it is doing. “All the products have been advanced preserving scalability in mind. We have already expanded to four cities within five months of operations. There is still loads to be achieved at the product aspect, however if someone asks me to transport to Philippines or China day after today, we're all set to head!,” Samar said.
Jugnoo became founded via Samar Singla, CEO and founder, B.Tech IIT Delhi and Chinmay Aggarwal, CTO and co-founder, B.Tech IIT Delhi in November 2014. The funds raised in this round could be applied in particular for enlargement across cities and developing our tech crew for better product.
It’s terrific to see an increasing number of younger startups attempt to clear up huge troubles in India. Although their boom has been amazing, it'll be exciting to peer how they’ll navigate in the marketplace given the growing competition inside the area. It’s pretty outstanding to look Jugnoo expanding so rapid, but the question remains how nicely they’ll be able to consciousness on all of the elements together.