Jugnoo a Chandigarh based on demand autorikshaw aggregator has re-launched Fatafat a hyperlocal delivery service. The service was launched by Paytm backed startup restricted to delivering only fruits and vegetables through the company’s network of autorickshaw.
Jugnoo was founded in 2014 by Samar Singla and Chinmay Aggarwal. With a user base of 120 million its services are available in 29 cities. It rasied $5 million in its Series A round funding from Paytm and Snow leopard Technology Ventures in July 2015. Other investors participated in the round included Vikas Taneja an Angel Investor, Rakesh Mathur co-founder of Junglee, an investor in Yandex and Facebook.
Samar Singla Co-founder of Jugnoo said
“The service has started in Chandigarh and will be expanded to other cities, beginning with Gurgaon in the next one month. The idea is to have a complete end-to-end integration. We will buy from the mandis in the morning and store in our warehouses. The products will then be delivered by autorickshaw drivers who are not taking a ride or are sitting idle. Fatafat is already clocking 100 deliveries a day and the model seems unit-economics positive.”
In march 2015 Jugnoo started FataFat service for eight months. With 2 lakh registered users on Fatafat, it was receiving 1k orders per day in 4 cities. Users were delivered with grocery products at their homes from the stores within the city. Jugnoo has registered 10k autorickshaws in over 20 cities.
“Samar Singla also said
“While Jugnoo’s network of autorickshaws was not that big earlier, there was a lot of competition from other grocery delivery apps which were giving huge discounts. Also, we realised that not everything in hyperlocal delivery is profitable.”