Online alternate fuel marketplace Buyofuel has raised over Rs 11.5 crore in a Pre-Series A round led by Inflection Point Ventures (IPV), a Gurugram-based angel investment firm.
The round also saw participation from Venture Catalysts, LetsVenture, Lead Angels Fund, and Gruhas Proptech. The startup plans to use the raised capital for expanding the services across geographies, development of product offerings as well as technology.
Buyofuel says 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 metric tonnes/month and Seller-base with sell capacity of more than 2,00,000 metric tonnes/month.
"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, Buyofuel’s journey for a green India has been tremendously supported by IPV. IPV has continuously engaged with Buyofuel on a regular basis and has played a big part in the growth of Buyofuel," said Kishan Karunakaran, Founder & CEO of Buyofuel.
Buyofuel claims to be the only online marketplace for all types of quality-assured biofuels and wastes with a complete digitized interface.
The startup has emerged with the largest seller and buyer base in the alternate fuel category and 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.
Speaking on the investment, Ankur Mittal, Co-founder & COO of Inflection Point Ventures, said, “Biofuels are a powerful alternative fuel substitute for most of the mainstream fossil fuel options whether diesel, petrol or even CNG. Buyofuel has the ambition to scale its business and make the adoption of clean fuel options seamless and more efficient. At IPV, we are keenly watching the ESG and Cleantech segment and have made bets across different business models."
According to the company's statement, India is currently the 3rd largest consumer of energy in the world, importing more than 80% of its fuel requirements while generating more than 350mn MT of organic waste within India.
Buyofuel said it aims to make India energy-secure and meet its emission goals by substituting fossil fuel consumption with biofuels manufactured within India, from wastes generated within India.
Biofuels is a $110 Bn market globally today with the Indian biofuels market being about $10 Bn currently, Indian Biofuels market is growing rapidly and likely to be a $50 Bn market over the next few years.
Last year, Buyofuel was selected as ‘Top 10 Startups of Tamil Nadu’ by Startup TN, Tamil Nadu Government.