Treis Solutions, which operates on-demand fuel delivery service called FuelBuddy, on Sunday said it has acquired Bengaluru based Y-Combinator backed MyPetrolPump in a cash-and-stock deal.
With the deal, FuelBuddy plans to expand into new geographies and onboard customers, per a statement. The company declined to share details of the deal’s financial terms.
FuelBuddy co-founder and CEO Adnan Kidwai told TechCircle that all of MyPetrolPump’s investors have exited the company, without sharing specific details.
The consolidated venture, Kidwai said, will comprise of over 90 employees. By the first quarter ending June 2021, the employee base is expected to bump up about 1.7x, he added.
The combined business at FuelBuddy, post deal, constitutes of over 100 bowsers or refuellers under management that are servicing across 30 cities with a combined delivery volume of about 40 million litres.
"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-2 cities and expand our footprints to rural areas too,” MyPetrolPump founders said in a joint statement.
While FuelBuddy focuses primarily on bulk fuel category, MyPetrolPump services the non-bulk category. The two claim to have processed 100,000 orders so far, separately so far.
B2B player FuelBuddy’s average order size is 1,700 litres while MyPetrolPump’s average order size is 300 litres, the statement added. With MyPetrolPump, FuelBuddy will be able to service both bulk and non-bulk category of customers.
“This acquisition also kicks off the consolidation process in this space and FuelBuddy will be looking at smaller bolt-on acquisitions to further consolidate the industry and create a solid footing for itself... We have a few more strategic projects lined up which should take shape over the next 3-4 months,” FuelBuddy promoter SK Narvar said.
Founded in 2016 by Kidwai and Malhotra, FuelBuddy’s service runs on an app, with a product that is Internet-of-Things and cloud computing enabled. Apart from doorstep fuel delivery, it also has value added services.
Also founded in 2016, MyPetrolPump claims to be a first-of-its-kind on-demand fuel delivery service in India via its attempt to solve refuelling problems faced by owners of diesel generators and stationary equipment.
FuelBuddy has so far raised Rs 29.5 crore, MyPetrolPump has raised Rs 14 crore, in funding for meeting expansion plans. Both the players, the statement said, have registered 50% month-on-month business growth since February 2021.
FuelBuddy offers complete supply chain solutions using its backend technology, letting customers use advanced analytics to control and monitor data. Its clientely include the likes of several public-sector undertaking -- Indian Oil, Bharat Petroleum, and Hindustan Petroleum.
Present in 29 cities, FuelBuddy has delivered about 9 million litres of fuel, and processed about 15,000 orders, with a commitment of four-hour deliveries. It operates three verticals -- FuelBuddy Operated Fleet, Franchisee Partners, and Delivery Partners.
MyPetrolPump, previously owned by ANB Fuels, offers three-hour delivery of ordered fuel at doorstep via a mobile and web app. Co-founded by Ashish Gupta, Nabin Roy and Alok Dube, MyPetrolPump processed around 75,000 orders so far. It has so far delivered about 30 million litres of fuel, and has over 6,000 customers in Bengaluru, Hyderabad and Pune.
While Finocial Information Systems served as a financial advisor to FuelBuddy, AMA Legal served as the legal advisor.