FuelBuddy, an app-based, IoT-enabled, and cloud-enabled fuel delivery platform, announced that it has acquired MyPetrolPump, a Bengaluru-based on-demand fuel delivery startup, which would give it access to new geographies and customers.

FuelBuddy will now have over 100 bowsers (refuellers) under its management, serving 30 cities and all market segments with a combined delivery volume of nearly 40 million liters and nearly 100,000 processed orders.

According to the statement, it focuses primarily on the bulk segment and gives FuelBuddy access to newer geographies, clients, and management bandwidth.
“The synergy between the two organizations 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 and segments across the country," says Gautam Malhotra, Founder, FuelBuddy.

In Bangalore, Hyderabad, and Pune, the MyPetrolPump team has developed a fantastic platform and company. The combined company will be active in 30 cities across India when combined with the FuelBuddy network, he added.

According to Gautam, this acquisition kicks off the consolidation phase in this space, and FuelBuddy will be looking for smaller bolt-on acquisitions to further consolidate the industry and establish a strong footing for itself.

While entry barriers to this business may seem low, the model requires licensing, technology, financial strength, and support of long-term investors to create a large, sustainable, and growth oriented-organization, he said.

FuelBuddy's average order size is 1,700 liters for institutional B2B customers, while MyPetrolPump's average order size is 300 liters. FuelBuddy will be able to serve both bulk and non-bulk customers following the consolidation, the company stated.

According to the study, India's high-speed diesel market is worth $100 billion, and the doorstep HSD distribution model has a potential market share of up to 26%, suggesting a $26 billion market for startups like FuelBuddy.

Ashish Gupta, Co-founder of MyPetrolPump, commented on the synergistic transaction and geographic scope.

"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 $ 100 billion market opportunity.

"We would now be able to serve customers from Tier-II cities and expand our footprints to rural areas too,” he added.

According to the press release, FuelBuddy had raised Rs 29.5 crore and MyPetrolPump had raised Rs 14 crore in funding for expansion plans.