Neeraj Gupta: FuelBuddy aims to address the challenges of traditional fuel delivery methods that are prone to pilferage, leakage and theft of fuel waste during delivery, largely due to inefficient routes and transportation methods. With our safety protocols and usage of GPS tracking, geotagging, geofencing, and IoT sensors, FuelBuddy guarantees safety protocols are strictly followed throughout the delivery process.
This results in a significant reduction of fuel waste and minimises the environmental impact. Using technology and data analytics enables precise monitoring, ensuring that fuel is transported and delivered safely and that any irregularities are detected and addressed promptly. FuelBuddy enhances safety by reducing the risk of accidents and theft associated with traditional refuelling, as customers can have fuel delivered directly to their vehicles at secure locations.
ET: FuelBuddy has shown revenue growth from Rs 18 crore to Rs 600 crore in FY 2022-23 over the past three years. What are the strategies and factors that you believe contributed to this substantial growth?
NG: Multiple reasons have fuelled this growth.
One key factor driving our success is the strategic transition from a fuel-as-a-service company to an energy-as-a-service company. This shift has allowed us to broaden our portfolio and tap into new markets globally. The recent infusion of $20 million is a testament to our commitment to expanding our offerings across the globe, focusing specifically on entering the UAE market. Our success in India has provided a blueprint for replication in the UAE, and we are on the verge of launching our services in the region. Expanding into key growth markets has been a crucial aspect of our growth strategy. We are confident of a presence in over 50 cities in India by the end of 2023.
Diversification has been another key driver of growth. We have expanded our services beyond traditional fuel delivery to include electric vehicle charging stations and solar panel installations, anticipating the evolving needs of the market and staying ahead in the energy services domain. Leveraging technology and automation has played a pivotal role in streamlining our operations and enhancing customer experience. Implementing cutting-edge technology, including mobile apps and data analytics, has allowed us to optimise diesel procurement and delivery processes, too.
Strategic partnerships have helped to expand our network and establish the brand as a market leader. Collaborations with major oil companies, like Indian Oil Corporation and Hindustan Petroleum Corporation Limited, along with diversification into lubricant delivery, have broadened the spectrum of services we offer, contributing significantly to our revenue growth.ET: What about FuelBuddy’’s global expansion, including recent entry into the UAE and the upcoming launch in Africa? What prompted these global expansions, and what are your goals for these markets?
NG: The motivation behind these international expansions is the recognition of the increasing demand for innovative and convenient energy distribution solutions. The success achieved in India prompted us to explore these opportunities.
FuelBuddy aims to provide clean energy solutions, doorstep fuel delivery, and other energy-related services to businesses and individuals in the UAE and Africa. These expansions align with FuelBuddy’s vision to be a one-stop solution for all energy needs and democratise the fuel supply and energy distribution in these regions.
ET: FuelBuddy wants to transition to an energy-as-a-service company and introduce new energy-related services. Can you share more details about these plans?
NG: FuelBuddy’s vision of transitioning to an energy-as-a-service company is a strategic response to the evolving energy landscape, both in India and globally. The energy sector has been undergoing a significant transformation in recent years, with an increasing focus on sustainability and innovation. This transformation has created new opportunities and challenges that FuelBuddy aims to address.
In India and the world, the energy sector has witnessed a notable shift towards cleaner and more sustainable energy sources, which is going to help in reducing carbon emissions, combat climate change, and ensure a more sustainable future for our planet. As the demand for electric vehicles (EVs) continues to rise, there is a growing need for convenient EV charging infrastructure. This is relevant in India, where the adoption of EVs is gaining momentum. FuelBuddy is developing a consumer app, which will further enhance its ability to offer convenient and user-friendly energy services. This app will provide users with a seamless experience for ordering fuel, scheduling EV charging, and managing their energy-related needs, all at their fingertips, helping to alleviate range anxiety among EV users and contributing to the development of a robust EV charging ecosystem in the country.
Furthermore, FuelBuddy’s expansion into clean energy delivery and solar panel installations reflects its commitment to providing sustainable and environmentally friendly energy solutions. FuelBuddy aims to make clean energy accessible and convenient.
ET: FuelBuddy recently secured $20 million in funding and made a strategic acquisition with MyPetrolPump. How will this funding and acquisition contribute to the company’s growth?
NG: The funding will provide the company with the financial resources needed to expand its portfolio and operations. This capital infusion will enable FuelBuddy to scale up its services, invest in technology and infrastructure, and continue to innovate in the energy distribution space.
The acquisition of MyPetrolPump, a Bengaluru-based on-demand fuel delivery startup, further strengthens FuelBuddy’s market presence and expertise in fuel delivery. It expands the company’s reach and allows it to tap into new markets and customer segments.
ET: What challenges do you foresee in the journey to becoming a global leader in mobile energy distribution?
NG: These challenges may include navigating local regulations, cultural differences and competition from established players. Ensuring the safety and reliability of energy delivery, especially in remote or underserved areas, can pose logistical hurdles.
FuelBuddy’s commitment to safety, adherence to regulations, and its use of advanced technologies, such as real-time monitoring and GPS tracking, mitigate many of these challenges. Establishing strategic partnerships and alliances with local stakeholders and governments is another approach to overcoming regulatory and cultural barriers. Furthermore, FuelBuddy’s continuous investment in talent, technology, and innovation positions it well to navigate the complexities of the mobile energy distribution and energy-as-a-service markets.
ET: What is this collaboration you have with a bank?
NG: A feature of this collaboration is a buy now pay later (BNPL) service — where customers can acquire diesel on credit. It offers interest-free credit for 22 days, providing customers with a flexible and convenient repayment timeline.
