Jugnoo, a hyperlocal marketplace confirmed its acquisition of cab service provider BookMyCab to launch its services in Mumbai. The acquisition deal amount has not been disclosed by the company.
BookMyCab got the cab aggregation license in Delhi last month that both Ola and Uber have been unsuccessful at getting.
For Jugnoo, this acquisition comes at the right time, in sync with their expansion plans and is a strategic move to launch in Mumbai, the financial capital of India, and bring 2000 “kaali peelis” onto their platform. This will get Jugnoo about 4000 vehicles and 10k daily transactions in a month. It now completes 5,000 transactions a day in Chandigarh, Ludhiana, Amritsar, Jaipur and Gurgaon, and will also also be launching across the national capital region soon.
BookMyCab will cease to exist as an independent entity after the back-end technology integration is completed in a month.
In June 2015, Jugnoo raised a Series A funding of $5 million led by Snow Leopard with participation from Paytm. And the company is in talks of raising about $20 million in Series B round of funding to help scale its operations, said company CEO Samar Singla.
Founded in November 2014 by Samar Singla and Chinmay Agarwal, Jugnoo is a hyperlocal on-demand multi-service provider which employs auto rickshaws as its logistic partners. The startup has three wings of services with their respective apps. It not only offers transportation facility to the users but also provides delivery services.
The company provides varied products and services ranging from A2B transport to hyperlocal deliveries. Samar Singla, CEO Jugnoo said, “Getting a licensed player onboard should tip the scale in our favor and is a huge opportunity for us.” When quipped if Ola’s acquisition of TFS earlier this year made him insecure, he just adds “Jugnoo is the underdog and we like it that way, we just do our thing which is to deliver the best product and services to the consumer.”