 "Jugnoo buys older start-ups to take on Ola and Uber")
India’s Jugnoo, a ten-month-old start-up that has apps for both auto rickshaw rides and food delivery, announced it acquired Bistro Offers, a restaurant discovery app and Yelo, a services marketplace. The deal size of both the start-ups combined is said to be worth $1 million in cash and stock.
With this acquisition, Jugnoo wants to strengthen its position in the hyperlocal space. Bistro, an eighteen month old start-up, provides a DIY platform for broadcasting offers and managing loyalty for restaurants. The app helps build, execute, and monitor customer engagement and brand loyalty campaigns. Yelo, a one year old start-up, offers a networking app for freelancers and part-timers.
Jugnoo runs three apps – Jugnoo Autos, Jugnoo Meals, and Jugnoo Fatafat. The Jugnoo Autos app, started in November 2014, is like Uber for auto rickshaw rides. The other service is Jugnoo Meals, launched in February, which offers home delivery of freshly home-cooked food with a rotational menu. The meals are cooked by Jugnoo’s in-house chefs and are delivered within 30 minutes of placing the order.
Jugnoo launched Jugnoo Fatafat in April, a hyperlocal ecommerce marketplace for home delivery of fresh groceries.
“Between Jugnoo, Bistro, and Yelo, we offer complementary products and there is potential for significant synergies,” says Samar Singla, co-founder and CEO of Jugnoo, an engineer from Indian Institute of Technology.
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The start-up secured $5 million in seed funding from Snow Leopard and PayTM three months ago.
Jugnoo competes with heavily-funded homegrown taxi app Ola which also entered the grocery delivery and food ordering space. It’s also up against global giant Uber.
This is an excerpt from Tech in Asia. You can read the full article here.