Biofuel: Towards Greener India

Buyofuel identified a gap in the supply chain of the fast-evolving biofuel industry. This enabled the startup to model its business on newer technology-led strategies to meet the growing market demands.

Subsequently, in November 2022, it secured Rs 11.50 crore in the second round of pre-series A funding. IvyCap Ventures led this round with participation from LetsVenture and Venture Catalysts, among others. Buyofuel is in the process of raising additional funds later this year.

The company closed its last fiscal clocking 20 times more revenue compared to March 2022, which, according to CEO Kishan Karunakaran, was “better than their initial expectations”.

Bumpy Beginnings
The startup claims to have the largest supply base today but its beginning was far from an easy road despite the thriving biofuel industry. “When we first entered the market, most of the sellers and waste generators were from the agricultural sector. The scepticism was evident since this was their first transaction through the digital mode. As a result, there was significant resistance towards digitisation,” recalls Karunakaran.

Despite the progress in this regard, even today the company faces this difficulty as it expands in new geographies. As it entered each market, pre-existing waste traders who were taking advantage of waste generators and agro-processing businesses caused some backlash and obstacles for Buyofuel as well. “However, we established a great support team to handle these situations,” the CEO explains.

Since the market was anything but easy, Karunakaran began to engage with numerous angel networks much earlier. The startup decided to decrease the number of new hires and focus on hiring people who could multitask and cover a wider range.

The Way Forward
In 2022, Buyofuel expanded into various geographies and multiple states. Aiming to grow outside India, it is set to enter Europe as well. In 2023, it will continue to make sizable investments in integrating artificial intelligence, blockchain and other technologies.

In the short term, its growth strategy is focused on acquiring more sellers and buyers and ensuring transactions via the platform. In the medium term, it intends to ensure expansion into other geographies. In the long run, Karunakaran aspires to automate the technology so that all buyers and sellers are at ease using Buyofuel.