FuelBuddy Introduces Buy Now Pay Later Service to Boost Sales and Expand Market Presence
- ByStartupStory | July 10, 2023
FuelBuddy, a leading doorstep fuel delivery startup, has unveiled a buy now pay later (BNPL) service that allows customers to purchase diesel on credit with zero interest and a 22-day repayment period in collaboration with a bank. The introduction of this new offering aims to enhance sales and expand FuelBuddy’s market presence, which currently serves both domestic and international markets, according to a top executive.
Neeraj Gupta, CEO of FuelBuddy, highlighted the significance of providing credit facilities in the industry, stating, “Traditionally, the domestic oil industry has relied on petrol pumps to act as both financiers and money lenders. However, we take pride in pioneering a smart customer solution in partnership with a bank, revolutionizing the availability of credit in this sector.”
Since its establishment in March 2018, FuelBuddy has expanded its operations to 180 cities across India and two overseas markets. With a current monthly delivery volume of 70 to 75 lakh across all operating cities, the startup expanded into the UAE and Mozambique in April of this year to sustain growth and achieve higher profits.
While the potential for diesel delivery remains significant within India, the domestic market offers regulated pricing that results in minimal profit margins, explained Gupta. In order to ensure profitability, FuelBuddy recognized the need to venture beyond the domestic market and focus on higher volumes and better margins abroad.
Looking ahead, FuelBuddy plans to continue geographic expansion and aims to operate in 300 cities by the end of the current financial year. Additionally, the startup intends to enter the lubricant market, with plans to offer lubricant solutions to customers in the next quarter.
FuelBuddy, which generated an annual turnover of ₹610 crore in FY23, expects to achieve profitability this year. The CEO outlined the revenue model, mentioning that a convenience fee is charged to customers for doorstep delivery.
FuelBuddy has established strategic partnerships with leading state-run oil corporations such as Indian Oil Corp. (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). Furthermore, in its pursuit of the lubricant market, FuelBuddy has announced tie-ups with IOCL and HPCL to strengthen its presence in this segment.
The startup aims to address safety concerns, adulteration issues, and fuel pilferage through its specialized refuellers fleet. With deliveries as low as 20 liters, FuelBuddy caters to various customers, including schools, hospitals, apartments, commercial setups with diesel generators, fleets, and cars.
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