Online alternative fuel marketplace Buyofuel has raised over ₹11.5 crore in a Pre-Series A round led by Inflection Point Ventures (IPV). The round saw participation from Venture Catalysts, LetsVenture, Lead Angels Fund and Gruhas Proptech. The funds raised will be utilised towards expanding the services across geographies, development of product offerings as well as technology.
The start-up claimed that it has the largest supply base of quality assured-biofuels and fuel consumers, offering economic prices for wastes and biofuels. Buyer-base with buy capacity of more than 6,00,000 tonnes a month and seller-base with capacity of more than 2,00,000 tonnes a month. It is helping non-renewable fuel consumers to switch to low or zero emission fuel options and helping them to cut their carbon emissions by moving to biofuels. Buyofuel currently has over 1,600 verified registered users, with a supply of biodiesel, solid biofuels and organic waste on a per-day basis.
Kishan Karunakaran, Founder and CEO, Buyofuel said, “Buyofuel looks to mainstream biofuels as a major fuel in India’s energy mix by ensuring that biofuels contribute to more than 10% of India’s fuel consumption.”
Ankur Mittal, Co-founder and COO, Inflection Point Ventures, said, “Biofuels are alternative fuel substitute for most of the mainstream fossil fuel options whether diesel, petrol or even CNG. Buyofuel has an ambition to scale up its business and make the adoption of clean fuel options seamless and more efficient. At IPV, we are keenly watching the cleantech segment and have made bets across different business models,” he added.
The start-up’s clients include companies like Aditya Birla, JSW, TVS Tyres, Ramco Cements, Dalmia cements, Thermax and many others are registered users of Buyofuel. The company has recorded a monthly revenue of over ₹2 crore.
Data shows that biofuel is a $110 billion market globally with the Indian biofuel market being about $10 billion currently. Indian biofuel market is growing rapidly and likely to be a $50 billon market over the next few years.