Around mid of May, Jugnoo relaunched its hyperlocal grocery delivery business ‘Fatafat’ to Chandigarh residents, in a bid to strengthen and diversify its delivery business. The Chandigarh-based company aims to provide affordable grocery to Chandigarh citizens at doorstep with a quick turnaround time.
Jugnoo has now acquired SabKuchFresh, a hyperlocal delivery service startup, in its home city, to improve logistics, quality checking, packaging and sorting of the deliveries. This will boost its ability to deliver high number of orders everyday to customer with maximum optimization of time and delivery centres.
Fatafat’s current model makes use of Jugnoo’s association with autos and hopes to improve the delivery times by upgrading its logistics. Fatafat’s first stint at hyperlocal grocery delivery failed to sustain because of lower scale of operations, which could not have been ramped up back then.
Talking about the deal, Samar Singla, CEO – Jugnoo, said,“This is a step towards helping the auto drivers to supplement their livelihood through extra earnings. Jugnoo also intends to create a logistics network for the mass market of India and wants to tap the hyper-local delivery service space through best possible routes.”
Fatafat is focusing on fruits and vegetables at the moment, with ten times the scale and hopes to benefit from SabKuchFresh’s procurement cycle of these items. SabKuchFresh has a tie-up with more than a 100 farmers and boasts of a strong network of B2B and B2C users.
Paytm-backed company is planning to increase its operations in Chandigarh and attract residents who are still not bitten by the online ordering bug. An impressive acquisition also calls for a specialized team looking into the larger perspective and vision of the company.
We feel that this is a very smart move on Jugnoo’s part, considering Jugnoo has been forefront in the segment, has bigger plans to diversify in coming years. Many Startups launch initiatives without much thought on strategy and sustainability, but Jugnoo has come back with even more punch and thought into the service.
If the service becomes successful in Chandigarh, we could see it launching in other cities in India as well. For the time being, slow and steady seems to be Jugnoo’s motto!
Source: Livemint
