Chandigarh-based hyperlocal marketplace Jugnoo has acquired Mumbai-based taxi aggregator BookMyCab. With the hyperlocal segment heating up, this acquisition is a way for Jugnoo to get a faster foothold into Mumbai market.
Details of deals are undisclosed and YourStory could not confirm the amount involved in the acquisition.
Importantly, BookMyCab earned cab aggregation license in Delhi last month that both Ola and Uber failed to achieve. The deal terms are executed and all the paper work is expected to be wrapped up in a week's time.
For Jugnoo, this acquisition comes at the right time, in sync with their expansion plans and is a strategic move to launch in Mumbai. Jugnoo will bring 2000 'kaali peelis' onto their (Jugnoo+BookMyCab) platform. With this deal, Jugnoo will have 4000 vehicles and 10K daily transactions.
For the uninitiated, Jugnoo started as an auto rickshaw aggregator and quickly diversified into hyperlocal deliveries and currently runs three apps -- Jugnoo Autos, Jugnoo Meals and Jugnoo Fatafat.
Speaking about acquisition, 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 asked about competition in the online cab rental space, he added,
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.
The brainchild of IIT, Bombay alumni, BookMyCab claims to be the third largest taxi aggregator in the country and raised INR 60 crore series A last year from Vridhhi Fund-I along with existing investors YourNest Angel Fund and Mumbai Angels.
In June this year, Jugnoo snapped up $5 million Series A from Snow Leopard and Paytm. The company is also looking to close $20 million Series B round soon and according to YourStory’s sources, Samar will be going to China for the same.
For Jugnoo, this acquisition is more beneficial for its practical offerings, BookMyCab’s wide-spread reach makes it smoother for them to venture out into taxi aggregation. Samar added,
We have a very loyal customer base that has been requesting taxi services for some time now and taxi drivers also want us to enter the taxi space.
The acquisition makes immense sense for Jugnoo which was looking to foray into taxi aggregation space for quite some time. As of now, Jugnoo’s reach was limited largely to north India, however with BookMyCab, Jugnoo will get an upper hand in Mumbai and Delhi where BookMyCab had built significant traction.
The hyperlocal space has been making a lot of news this year, and with BookMyCab in its portfolio, Jugnoo will be in better position to counter Ola. Ola also forayed into hyperlocal space recently and at present it’s delivering grocery and food in Bengaluru. Hyperlocal space is going through an exciting time in India. Stay tuned for more updates.