Jugnoo eyes $30-mn fund raising

To launch services in Africa, South America and Southeast Asia

On-demand auto-rickshaw aggregator Jugnoo plans to raise around $30 million in the Series-C round in three to six months. The company plans to fuel global expansion plans as it seeks to mark its presence in Africa, South America and Southeast Asia.

Jugnoo Founder and Chief Executive Officer Samar Singla said the company has been in talks with several investors and hopes to close the deal soon. "We plan to launch in a number of countries in Africa, South America and Southeast Asia. I would be meeting several international investors this month," he said.

Of the $30 million it raises, the company plans to keep aside $10 million for foreign operations. It hopes to start off-shore operations by the end of this year. Singla said there was a demand for logistics support such as business-to-business delivery and auto aggregation in these countries. The company might also get into tie-ups or joint ventures with local partners.

FUNDS SO FAR...

• Series A: Raised $5 million in a Series A funding round from Snow Leopard Technology Ventures and homegrown mobile payments and commerce platform Paytm.
   
• Series B1: It raised $3 million in the first tranche of this round, adding $2.5 million in the second tranche, making it a total of $5.5 mn.
   
• Series B2: Series B funding of $10 million, $5 mn from Paytm and the remaining from other existing investor Snow leopard and a new investor named Rocketship.vc

"We want to be an economical alternative to Uber. We will target motorcycle taxis in Africa and tuk-tuks or a version of autorickshaw in Southeast Asia," Singla added.

"Once we have the cash, we would be starting the expansion operations," he said.

In April this year, online mobile wallet-major Paytm, led the Series-B round of Jugnoo for $10 million. At present, the autorickshaw aggregator and hyperlocal delivery services provider operates in 30 cities and 11 villages across the country. The company said the money was being spent on India expansion plans and providing more benefits to its network of around 10,000 auto-rickshaw drivers.

To reinforce its hyperlocal delivery service Fatafat, it recently acquired SabKuchFresh for an undisclosed amount. SabKuchFresh, an online store of fruits and vegetables has a tie-up with over 100 farmers.