On Demand Auto Rickshaw Aggregator Jugnoo Launches Grocery Delivery Service

Chandigarh-based on-demand auto rickshaw aggregator Jugnoo has launched a new service ‘Grocery’. Under the service, grocery orders will be delivered by auto-rickshaw drivers during their free time.

This follows the launch of its other service ‘Fresh’, delivering fresh fruits and vegetables.

Jugnoo was founded by Samar Singla and Chinmay Agarwal in 2014. And it restarted its hyperlocal delivery service ‘Fatafat’ in May this year.

Talking about the new product Samar Singla, founder and CEO, Jugnoo commented, “Post the successful launch of ‘Fresh’, the idea was to enhance our user experience and offer customers an all-inclusive end–to-end solution for all their daily needs. This additional category was a profitable move, as this adds to our overall order size.”

Jugnoo has introduced a ‘Wholesale’ category that allows customers to order their daily use items in bulk. For the service, Jugnoo has tied up with the local branches of wholesalers in the city. As per a company statement, it currently has 3,500 SKUs for its Grocery service.

At present, deliveries are done the next day of placing an order between 4 pm-8 pm. To further enhance the services, Jugnoo plans to launch an ‘Express Store’ this December, where deliveries will be done within 2 hours of placing an order.

After acquiring a strong hold in Chandigarh, the startup intends to replicate the model in 40 cities across the country, with a plan of launching in about six cities by mid of next year.

In April this year, it raised a total of $10 Mn in its second round of Series B funding led by mobile wallet and mcommerce company Paytm.

The company is currently rendering its services in 40 cities of India and trending at 40,000 daily transactions. It has over 12,000 autos under the brand at present. Apart from its core business of auto-rickshaw aggregation, the company is also expanding across other verticals of hyperlocal logistics in B2B and B2C domains, with its recently launched services like Fresh, Meals, Grocery, and Jugnoo Delivery.

India’s grocery market is ~ $503 Bn, making India the third-largest grocery market in the world, and is expected to touch $900 Bn by 2020. The Indian online groceries market is estimated to reach $40Mn (INR 270 Cr) by FY19 growing at a CAGR of 62% from 2016 to 2022. Other players in this segment include Grofers, BigBasket,  Localbanya, etc.