Delhi-based Fuel delivery startup FuelBuddy has raised $20 million from the Naveen Jindal Group, Ravi Jaipuria Group (RJ Corp) and Nilesh Ved (Apparel Group, UAE).
By introducing new fuels as business categories, geographical regions, and product releases, the mobile energy distribution platform is prepared to enter the sector’s substantial development and expansion phase.
The fuel delivery startup will use the money to grow in South East Asia, India, and other international markets in the Middle East and North Africa (MENA) areas. The funds will also be used to improve the technology and extend its reach to include alternative energies like gas and EVs.
Across the nation, FuelBuddy is already spreading to tier-two and tier-three cities and rural areas. Through a strategic alliance with ApnaPump, the company entered the North-East region of India.
It had received $ 2.3 million in seed finance from SK Narvar earlier in September 2020, along with a future financial commitment of INR 17 crore based on demand. FuelBuddy acquired the on-demand fuel delivery startup MyPetrolPump from Bengaluru in May 2021.
The fuel delivery firm will soon begin offering its services in the UAE after announcing its intention to do so. Nilesh Ved of Apparel Group, UAE, said, “With this latest funding, we believe that FuelBuddy is ready to set its mark in Dubai and venture into the GCC region as well.”
FuelBuddy is a significant player in the fast-evolving doorstep fuel delivery market in India
FuelBuddy is an app-based fuel delivery startup that was established in 2016. with operations in more than 130 places and more than 45,000 happy consumers.
FuelBuddy was developed to close a gap in the fuel delivery industry. When it started, the rules in India prohibited gas stations from selling fuel off-site. Therefore, only one alternative was available to all enterprises requiring petrol or diesel for their generators, and it was going directly to the Oil Marketing Companies for purchases.
However, during those times, OMCs only sold a single-order quantity of a minimum of 12,000 liters. It was a sizable amount for many companies, RWAs, malls, etc. Because of this, they used to purchase fewer barrels from the gas stations, which encouraged adulteration, theft, and other illegal actions.
Add to that the requirement for secure transportation, which was the initial pain point. After the regulation was changed in 2018, IOCL, BPCL, and HPCL received pilot licenses, and FuelBuddy received a license to collaborate with BPCL to establish this program.
At present, the startup buys fuel and delivers a smooth experience to the end customer at their doorstep by closely collaborating with all three major Oil Marketing Companies (OMCs), namely IOCL, BPCL, and HPCL.
With agreements with Indian Oil Corporation Limited (IOCL) and Hindustan Petroleum Corporation Limited, the firm has also entered the lubricants market (HPCL).
Across the nation, FuelBuddy claims to have provided about ten crore liters of fuel to various partners, including Coca-Cola, Amazon, DLF, Infosys, Taj, Hitachi, Amazon, Flipkart, Mahindra Logistics, and Delhivery, to mention a few.
We are changing from a fuel-as-a-service provider to an energy-as-a-service provider. The $ 20 million capital will enable us to grow domestically and internationally while also realizing our goal of offering energy services to customers throughout the globe, said FuelBuddy’s managing director Gautam Malhotra.