Indian biofuels B2B marketplace Buyofuel sees rapid growth
SUMMARY
Buyofuel operates on a transaction-based business model, serving as a B2B marketplace that connects buyers and sellers in the biofuels and organic wastes sector.
By Shardul SharmaPOSTED IN:
Indian B2B marketplace for biofuels, Buyofuel, has experienced significant growth recently and plans to diversify its revenue streams and enhance transaction volumes across key Indian states, according to the company’s CEO Kishan Karunakaran.
“Buyofuel has seen significant growth in recent years, achieving a 400X growth rate and generating a monthly recurring revenue of 100mn Indian rupees ($1.2mn). The platform has facilitated transactions of over 100,000 tonnes of biofuels. Looking ahead, Buyofuel plans to diversify its revenue streams and enhance transaction volumes across key Indian states,” Karunakaran says.
Buyofuel operates on a transaction-based business model, serving as a B2B marketplace that connects buyers and sellers in the biofuels and organic wastes sector. It is also exploring opportunities in renewable energy like biogas. “While biogas transactions are yet to be explored, Buyofuel remains committed to exploring opportunities in renewable energy, including biogas, as part of its efforts towards sustainability and environmental responsibility,” he adds.
Revenue for Buyofuel is generated through trading margins on transactions conducted on the platform. Both biofuel manufacturers and fuel-consuming businesses participate, contributing to these trading margins. Buyofuel aims to provide a transparent, efficient, and technology-driven solution to streamline the sourcing and trading of biofuels and organic wastes, creating value for all stakeholders involved in the supply chain.
Buyofuel’s B2B marketplace trades various biofuels, depending on market demand, availability, and regulatory requirements. Common types include rice husk, sawdust, groundnut shell, coffee husk, briquettes, pellets, mango seeds, wood chips, cashew nut shell, firewood, biofuel oil, plastic oil, palm stearin, palm husk, tyre waste, biodiesel, guava seeds, coir dust, refined bleached deodorised palm oil, mustard husk, and tamarind shell.
Digitally orchestrated end-to-end B2B transactions
Buyofuel digitally orchestrates end-to-end B2B transactions, ensuring transparency and security. This disrupts traditional models, which cater only to solid biofuels, and generic B2B platforms, says Karunakaran. “Buyofuel’s impact extends beyond transactions, fostering a sustainable ecosystem, reducing carbon footprints, boosting the viability of biofuel manufacturers, and enhancing rural income,” he states.
In the Buyofuel B2B market, primary participants include fuel suppliers who offer their products for sale to businesses through the Buyofuel platform and buyers who require fuel for their operations purchase from suppliers via the Buyofuel platform. Karunakaran notes that Buyofuel mitigates market risks, regulatory shifts, and technological disruptions through research to identify new waste resources, diversification across geographies and biofuel types, and engagement in research and development.
The Indian government actively promotes biofuels to reduce dependence on fossil fuels and mitigate environmental pollution. India's heavy reliance on imported crude oil makes biofuels, including biogas, a critical component for enhancing energy security. “Biogas production from organic waste aids in waste management and reduces greenhouse gas emissions. Overall, the demand for biogas in India is expected to grow as the country strives to meet its energy needs sustainably while addressing environmental and social challenges,” Karunakaran says.
