Nawgati, an Indian fuel-tech startup, raised $2.5 million in pre-Series A funding, with stock market investor Ajay Upadhyaya leading the round. The round also saw participation from Deepak Bhagnani Family Office, MeitY Startup Hub, Aamara Capital, and a few angel investors, including ex-Accenture MD Sanjay Sharma.

The firm intends to use the capital to increase its presence in India and grow abroad. Nawgati wants to expand its fleet offering, presently operational with Mahanagar Gas, to other large fuel corporations.

"We are looking to embed ourselves deeper in India and speed up our entry into international markets," said Vaibhav Kaushik, Nawgati CEO and Co-founder. "Our objective is to provide real, tangible value to businesses and end users alike as we expand our partnerships and tech solutions."

Nawgati has created a platform named Aaveg, connecting fuel stations, fleet operators, and customers. The platform optimizes fuel network use, automates refueling processes, shortens waiting times, and offers real-time visibility into fuel supply and movement of the fleet. Moreover, the platform provides real-time monitoring of station operations, allowing businesses to enhance forecasting, resource allocation, congestion management, and compliance enforcement.

Lead investor Ajay Upadhyaya emphasized that Nawgati is addressing issues in an industry that impacts millions every day but has received little innovation. This investment comes on the heels of Nawgati's earlier funding from multiple organizations, including GAIL, the Department of Science and Technology, MeitY Startup Hub, and Shark Tank India investors.

The Indian fuel retail market is growing substantially, with over 84,000 fuel outlets catering to over 300 million vehicles. Conventional fuel outlet operations are challenged by inefficient use of resources, poor data visibility, and congestion problems, offering opportunities for technology solutions such as Nawgati's platform.