The app-based startup, FuelBuddy acquires MyPetrolPump
On 9th May, FuelBuddy declared the acquisition of Bengaluru based on-demand fuel delivery startup MyPetrolPump, owned by ANB Fuels Pvt. Ltd., for a cash and stock consideration. This will enable FuelBuddy to reach new geographies and customers.
It gets 100 bowsers (refuellers) under management, with a reach to 30 cities. It gets access to all the market segments, including 40 million litres of delivery volume and 100,000 processed orders. It emphasises mainly on bulk category as per a statement and as a result, Fuel Buddy enters in the doorway of new geographies, customers and management bandwidth.
Fuel Buddy is a supply chain solution company using technology, an app-based, IoT and cloud-enabled fuel delivery platform. It helps the customers to use advanced analytics. It is India’s first legal on-demand fuel delivery company currently delivering Diesel. The motive is to provide honest and transparent service in the fuel delivery industry with a focus on adding value to customer satisfaction.
MyPetrolPump is a first-of-its-sort on-demand fuel conveyance company in India. It endeavoured to take care of refuelling issues by owners of diesel generators and fixed gear. Strikingly, FuelBuddy zeros in addition to the mass fuel classification while MyPetrolPump bargains in the non-mass class.
“The collaboration between the two companies is huge and I am sure both organisations put together will deliver high growth and great output. This collaboration is ready to acquire all key markets and segments all over the country.” Gautam Malhotra shared.
MyPetrolPump owns a huge platform and business in Bangalore, Hyderabad and Pune. Collaborating with FuelBuddy network, the combined company will work in 30 cities across the country, he added.
“This merger of both the companies also starts the consolidation process in this sector. FuelBuddy will be searching for smaller bolt-on merges to further blend the industry. This way it will create a strong footing for itself.” Gautam said.
Although the challenges and drawbacks in entering this industry seem less, the model requires thorough planning and structuring. It needs licensing, technology, financial strength, and the backing of long-term investors to build a huge, sustainable and growth focused-institution, he further said.
The average order size of FuelBuddy and MyPetrolPump is 1700 litres and 300 litres, respectively. They both cater for institutional B2B buyers. After the collaboration, FuelBuddy will be able to cater its service for both bulk and non-bulk groups of customers.
Budding Market
In India, the high-speed diesel market is of $100 billion and inside that the doorstep HSD delivery model is budding up to 26 percent market share. It means a $26 billion marketplace is available for startups like FuelBuddy.
“As a competitor of this exchange, we are very glad to turn into the biggest fuel conveyance organisation catering clients all over India. The merged qualities of both driving organisation in this space opens up new freedoms for us to aggressively pursue the $ 100 billion market opportunity”, he said.
“We would now have the option to serve clients from Tier-II urban communities and grow our impressions to country regions as well,” he shared.
As indicated by the press articles, so far FuelBuddy had raised Rd 29.5 crore and MyPetrolPump had brought Rs 14 Crore up in funding for meeting extensions plans.
