SK Narvar promoted Treis Solutions LLP (referred to as “Treis” or “FuelBuddy”), the first company to start fuel delivery services in India and a market leader in technology and market share, announced that it has successfully closed the acquisition of the business of a Bangalore based on-demand fuel delivery startup MyPetrolPump, a venture owned by ANB Fuels Pvt. Ltd., for a cash and stock consideration.
The Delhi – based company FuelBuddy is an app based, IoT and cloud enabled fuel delivery service. Established In 2016, FuelBuddy is a pioneer in fuel delivery industry in India. It is a tech enabled platform, which provides doorstep fuel delivery along with value added services.
On the other hand, MyPetrolPump is a first-of-its-kind on-demand fuel delivery service in India. It attempted to solve refuelling problems faced by owners of diesel generators and stationary equipment.
Notably, FuelBuddy focuses more on bulk fuel category while MyPetrolPump deals in non-bulk category, the release said.
The acquisition provides FuelBuddy with an access to newer geographies, customers and management bandwidth. There are huge synergies in the two businesses as both the startups operate in different geographies, different customers and also in different market segments making FuelBuddy the largest and the most diversified doorstep fuel delivery platform in the country.
With this acquisition, it will have over 100 bowsers (refuellers) under management servicing 30 cities and all market segments with a combined delivery volume of nearly 40 million litres along with an experience of nearly 100,000 processed orders.
Both, FuelBuddy and MyPetrolPump also have distinct advantages in the tech stack, thereby, enabling the combined entity to have a full tech stack, which is developed completely in-house including IoT, backend systems, cloud computing, CRM, receivables and payables management, the statement said.
Serving the Institutional B2B buyers, FuelBuddy’s average order size is 1700 litres while MyPetrolPump’s average order size is 300 litres. Post consolidation, FuelBuddy will be able to service both bulk and non-bulk category of customers.
The market size for High Speed Diesel (HSD – the fuel category FuelBuddy deals in) in India is USD 100 billion wherein the doorstep HSD delivery model (like FuelBuddy) has the potential of up to 26% market share implying a USD 26 Billion marketplace for startups like FuelBuddy. With two major players in the doorstep fuel delivery category coming together, FuelBuddy will now be able to claim a bigger market share with capabilities to serve larger chunk of customers hitherto served by small unorganized individual players with smaller fleet sizes.
In the recent past, FuelBuddy had raised Rs 29.5 crore and MyPetrolPump had raised Rs 14 crore in funding for meeting expansion plans. Even during the second wave of COVID, both FuelBuddy and MyPetrolPump, have registered undeterred growth where the business has grown by 50% month on month since February 2021. The delivery model has been helping the Institutional customers meet their HSD requirement in real time.
FuelBuddy’s services offer a safe and secure experience, accurate quantity and pure fuel at prevailing market prices ensuring customer convenience. It follows a 5-axis approach – cashless transactions, convenience, quality & quantity, safety and environment using technology as its backbone. FuelBuddy also offers complete supply chain solutions using technology, IoT and cloud computing thereby enabling customers to use advanced analytics to control and monitor data.
FuelBuddy works closely with the three large Oil Marketing Companies (OMCs), namely, IOCL, BPCL and HPCL for procurement of the highest grade of fuel and providing a seamless experience to the end-customer at their doorstep. It is present and delivering fuel in 29 cities and has delivered about 9 million litres of fuel. FuelBuddy operates through itsthree business verticals viz. FuelBuddy Operated Fleet, Franchisee Partners & Delivery Partners. FuelBuddy mainly deals with large enterprise clients. It has processed around 15,000 orders and has a brand commitment of delivery within four hours of order placement.
MyPetrolPump, through its mobile and web app, enables customers to order fuel in less than 5 seconds and it can be delivered within 3 hours! Since launch, the startup has delivered around 30 million litres of fuel and has garnered more than 6,000 customers in Bengaluru, Hyderabad and Pune. The start-up has processed around 75,000 orders and has developed state-of-the-art technology to manage its operations. MyPetrolPump was co-founded by Ashish Gupta, Nabin Roy and Alok Dube.
Speaking on the occasion, Gautam Malhotra, Founder, FuelBuddy, said, “We welcome the MyPetrolPump (MPP) team to the FuelBuddy family. The synergy between the two organisations is huge and am sure both the teams put together will deliver high growth and great results. The combined company is well poised to capture all key markets & segments across the country. MyPetrolPump team, lead by it’s founders, has built a great platform and business in Bangalore, Hyderabad & Pune. Coupled with the FuelBuddy network, the combined entity will be present & delivering fuel in 30 cities across India. The MPP founders also join the FuelBuddy family as partners and we are sure that they will deliver even stronger results now with the backing of FuelBuddy.”
“This acquisition also kicks off the consolidation process in this space and FuelBuddy will be looking at smaller bolt-on acquisitions to further consolidate the industry and create a solid footing for itself. Whilst entry barriers to this business may seem low, the model requires licensing, technology, a great team, financial strength and support of long-term investors to create a large, sustainable & growth oriented organisation,” he added.
“These are exciting times for FuelBuddy. We have a few more strategic projects lined up which should take shape over the next 3-4 months. Coupled with the MPP acquisition, these strategic projects will lead to huge value creation for all the stakeholders of FuelBuddy. We also take this opportunity to thank all the stakeholders of FuelBuddy for their continued support and belief in the team,” Malhotra added.
Commenting on the development, Founders of MyPetrolPump, said, “As part of this transaction, we are extremely happy to become the largest fuel delivery company serving customers pan India. The combined strengths of the two leading companies in this space opens up new opportunities for us to aggressively go after the USD 100 billion market opportunity. We would now be able to serve customers from tier-2 cities and expand our footprints to rural areas too”.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.