In 2018, the Indian government unveiled The National Policy of Biofuels, a visionary initiative aimed at reducing biofuel imports and promoting a cleaner environment. This policy shift created a ripe opportunity for companies in the biofuel sector to emerge and make their mark. One such pioneering venture is Buyofuel, founded in 2020 by Kishan Karunakaran, a seasoned professional with a strong background in the biofuel industry. He embarked on this journey with the support of his co-founders: Prasad P Nair, Sumanth Kumar Selvarasu, and Venkatesan Selvam.
Headquartered in Coimbatore, Buyofuel operates as an online business-to-business (B2B) marketplace dedicated to the trade of biofuel-based commodities. The platform serves as a vital connector, facilitating interactions among various stakeholders, including raw material aggregators, waste generators, manufacturers, and consumers, all within the burgeoning biofuel ecosystem.
At present, Buyofuel boasts a user base of approximately 1,500 individuals and entities, with 30 to 40 major corporate companies among its esteemed clientele. Renowned organizations such as Seshasayee Paper & Board, TVS Group, Thermax, ITC, UltraTech Cement, Dalmia Group, and JSW Steel have turned to Buyofuel for their biofuel needs. The platform offers an extensive array of products, ranging from sawdust, coffee husk, and cashew shells to bagasse, woodchips, groundnut shells, rice husk, biomass briquettes, pellets, biodiesel, plastic oil, and bio furnace oil.
Buyofuel operates within a biofuel marketplace characterized by three primary stakeholders: waste generators, biofuel manufacturers, and fuel consumers. Waste generators encompass farmers, agro-processing industries, and producers of organic biomass that can be transformed into fuel. These waste generators, often small and dispersed, benefit from Buyofuel’s sourcing team, which identifies and connects them with biofuel manufacturers.
The company’s sales team, on the other hand, engages with fuel consumers, gauging their interest in transitioning from conventional fossil fuels to biofuels. Subsequently, they facilitate the connection between biofuel manufacturers and consumers, ensuring a seamless supply chain. Notably, many of the products are manufactured on-demand, eliminating the need for extensive storage on Buyofuel’s part.
Buyofuel’s operational footprint spans seven different states, encompassing Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Maharashtra, Goa, and Punjab NCR. The Maharashtra and Tamil Nadu regions have particularly embraced Buyofuel’s offerings, attributing their success in these areas to CEO Kishan Karunakaran’s prior experience in biofuel manufacturing in Tamil Nadu. He also highlights the burgeoning biofuel market in Maharashtra and the promising potential in Punjab NCR.
While Buyofuel’s primary revenue source currently hinges on biofuel sales, the company is exploring avenues to introduce carbon credits as an additional revenue stream. Notably, Buyofuel has experienced remarkable financial growth in its short existence. In its inaugural year, the company generated a revenue of Rs 78,000. By FY21, this figure had grown substantially to Rs 56 lakhs, and in the last financial year, Buyofuel reported an impressive revenue of approximately Rs 20 crore.
Buoyed by its success and motivated by a vision of expansion, Buyofuel is gearing up for international forays, with plans to commence exports within the next six months. The company aims to transform into a cross-border marketplace while simultaneously venturing into the domain of carbon credit generation. Europe has emerged as a promising destination for Buyofuel’s international ambitions, owing to the region’s significant interest in biofuels and its favorable policies.
As Buyofuel continues to innovate and forge ahead, it exemplifies the transformative potential of the biofuel sector in India and beyond. By creating a streamlined marketplace that connects producers, manufacturers, and consumers of biofuels, Buyofuel is not only advancing the cause of sustainability but also catalyzing economic growth in the renewable energy sector. With an eye on international horizons and the addition of carbon credits to its portfolio, Buyofuel is poised to leave an indelible mark on the global biofuel landscape.
