Biofuel marketplace, Buyofuel, recorded a 4X increase in revenue in FY24, rising to Rs 87.7 crore compared to Rs 21.82 crore in FY23.
Founded in 2020 by Kishan Karunakaran, Venkateswaran Selvan, Sumanth Selvarasu, and Prasad P. Nair, Buyofuel is a B2B e-commerce platform that connects suppliers, manufacturers, and consumers of biofuels. The company facilitates transactions for solid, liquid, and gaseous biofuels along with raw materials.
The Coimbatore-based energy tech startup has raised a total of Rs 17.94 crore over five funding rounds. The latest funding round was a pre-Series A round raised in June 2023.
The majority shares of Buyofuel are held by Kishan Karunakaran at 18.32%, followed by Selvan Venkateshwaran with 11.68%. The ESOP pool accounts for 8.53%, while AIC Raise Business holds 2.51%.
In line with revenue growth, the company’s expenses also surged, reaching Rs 92.85 crore in FY24 from Rs 27 crore in FY23. The cost of materials accounted for the largest share at 90.93% of total expenses, followed by employee benefit costs at 3.74%. Finance costs, advertising, depreciation, and other expenses made up the remainder of the expenses.
Despite the increase in revenue, Buyofuel’s losses remained significant, with a net loss of Rs 4.92 crore in FY24, slightly improving from Rs 5.05 crore in FY23.
Buyofuel’s current EBITDA margin and ROCE stand at -4.20% and -59.31%, respectively, showing an improvement in operational efficiency while highlighting continued investments in scaling the business.