Igniting Change: Kishan Karunakaran Drives Sustainable Solutions With Buyofuel in the Biofuel Landscape

StartupTalky presents Recap'23, a series of in-depth interviews where we engage with founders and industry leaders to explore their growth in 2023 and their predictions for the future.

The biofuel manufacturing and trading industry drives sustainable energy by converting organic materials into eco-friendly fuels. This sector, focusing on liquid and gaseous biofuels, aims to reduce reliance on conventional fossil fuels for a cleaner energy future. Biofuel trading facilitates the exchange of these environmentally friendly alternatives, supporting a shift towards renewable energy sources globally.

The global biofuel market reported $140.43 billion in sales in 2021, valued at nearly $117 billion in 2022. Projected to reach $201.2 billion by 2030 with a growth rate of 8.3% between 2021 and 2030, the biofuel industry is expected to surge. By 2027, estimates suggest the market will reach $232.6 billion, highlighting its continued upward trajectory in the sustainable energy sector.

In a recent Recap'23 interview, we at StartupTalky had the privilege of connecting with Kishan Karunakaran, Founder and CEO of Buyofuel. We reviewed Buyofuel's operations in biofuel manufacturing, exploring their strategies and unique positioning.

StartupTalky: What does Buyofuel do? What was the motivation/vision with which you started?

Kishan Karunakaran: Buyofuel is India’s 1st B2B online marketplace, offering a diverse range of biofuels and organic wastes. Our platform facilitates a smooth transition for fuel consumers towards sustainable biofuels while providing biofuel manufacturers easy access to a variety of organic wastes. This strategic interplay contributes significantly to the growth of India's biofuel sector. Our mission is to propel India towards a low-carbon, sustainable future by promoting increased consumption of locally manufactured biofuels derived from organic wastes within the country.

In late 2019, Buyofuel began its journey, becoming an official entity by May 2020. I pioneered Tamil Nadu's first large-scale biodiesel plant, marking a significant presence in India's biodiesel landscape. Through firsthand experience, I identified key challenges in the biofuel sector in India—like fragmented supply chains, rising demand, complex payment structures, and a lack of streamlined processes. Seeing the need for a solution, Buyofuel was conceptualized as a waste and biofuel aggregator. Leveraging technology, we introduced India's premier online B2B marketplace for biofuels and waste, aiming to simplify the industry and drive sustainable progress.

StartupTalky: What is/are the USP/s of Buyofuel?

Kishan Karunakaran: Buyofuel's unique selling proposition (USP) stems from being the pioneering and exclusive online marketplace for biofuels and organic wastes. Our platform revolutionizes the industry by fully digitizing B2B transactions, providing fuel consumers easy access to quality biofuels, and enabling biofuel manufacturers to source organic wastes efficiently. This not only ensures better pricing for organic waste sources and biofuel manufacturers but also empowers fuel consumers to make a seamless transition to renewable fuels, reducing their overall fuel costs. Unlike conventional B2B platforms, Buyofuel brings specialized sector knowledge to the forefront. Our user-friendly transaction flow, from inquiry to order placement, payment, and delivery tracking, sets us apart in the market. We prioritize transparency, security, and quality assurance, offering a secure payment mode for all biofuel and organic waste transactions on our platform. Buyofuel is not just a marketplace; it's a transformative force driving the biofuel and organic waste industry toward sustainability and efficiency.

StartupTalky: How has the biofuel manufacturing industry changed in recent years, and how has Buyofuel adapted to these changes?

Kishan Karunakaran: Thanks to the Indian government's policies, biofuel demand has seen a significant rise, which is beneficial for us. Awareness has improved, but some areas still lag behind. We're actively running campaigns and reaching out directly to educate rural areas. We're expanding our field teams to rural pockets to let people know about available sellers and how they can tap revenues from their waste generated. 

With advancing technology, more waste is being converted into biofuels efficiently. This means our team requires a broader knowledge. We're investing in training and awareness programs to keep our team updated on the evolving biofuel industry.

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StartupTalky: How do you stay up-to-date on the latest trends and developments in the biofuel industry? Can you share examples of how staying informed about industry trends has influenced your product roadmap and business strategy?

Kishan Karunakaran: Keeping up with industry trends is crucial, especially with the growing focus on the biofuels sector. The Indian government's active role has been trying to push biofuels into mainstream energy production. Our platform bridges this gap. By connecting directly with biofuel producers and waste generators, we offer our clients the best market rates. Our strong presence in key regions ensures a steady biofuel supply, making us a top choice for clients seeking cost-effective and reliable energy solutions. Furthermore, with the recent advent of generative AI and blockchain, Buyofuel has been actively implementing these technologies into the platform to develop better supply chain traceability and other possible development of the sector itself for various stakeholders. 

StartupTalky: What key metrics do you track to check Buyofuel's growth and performance?

Kishan Karunakaran: To measure Buyofuel's growth and performance, we focus on several key metrics. Website traffic gives us a clear indication of our online visibility and reach. Conversion rates help us understand the effectiveness of our marketing efforts in turning visitors into customers. Customer acquisition costs are crucial for evaluating the efficiency of our marketing spend. Finally, overall sales revenue is the ultimate indicator of our business success, reflecting the culmination of all our strategies and efforts.

StartupTalky: What were the most significant challenges Buyofuel faced in the past year, and how did you overcome them?

Kishan Karunakaran: The past year presented a major challenge in the form of an unexpected surge in the demand for biofuels. To manage this effectively, we expanded our network by onboarding multiple new sellers, which enabled us to meet the increased demand without compromising service quality. We also undertook a comprehensive revamp of our supply chain processes, enhancing efficiency and responsiveness. Our online platform was upgraded to better handle the increased traffic and to provide a seamless customer experience.

StartupTalky: What are the different strategies you use for marketing? Tell us about any growth hack that you pulled off.

Kishan Karunakaran: At Buyofuel, we've adopted a multifaceted approach to marketing, encompassing digital marketing, content marketing, public relations (PR), and search engine optimization (SEO). Our goal is not only to reach a broad audience but to engage them meaningfully. A significant part of our strategy is re-engaging existing users, for which we've developed a custom-built, targeted campaigning tool. This tool enables us to connect with our customers through various channels like WhatsApp, Email, SMS, and Push Notifications, ensuring we maintain a strong presence in their day-to-day digital experience. One of our notable growth hacks has been leveraging this tool to create personalized and impactful campaigns that resonate with our audience, significantly boosting our engagement and retention rates.

StartupTalky: What are the important tools and software you use to run Buyofuel smoothly?

Kishan Karunakaran: Our operations at Buyofuel are supported by a suite of sophisticated tools and software. Google Analytics offers us in-depth insights into web traffic and user behavior, while Hoot-suite is our go-to for managing and optimizing our social media presence. Recognizing the uniqueness of our business model, we've invested in developing a custom CRM tool tailored specifically to our operational needs. This in-house system allows us unparalleled flexibility and control in managing customer relationships, tracking sales, and analyzing data, thereby ensuring seamless and efficient business operations.

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StartupTalky: What opportunities do you see for future growth in the biofuel industry in India and the world? What kind of difference in market behavior have you seen within states in India?

Kishan Karunakaran: Firstly, less than 15% of India's total waste is currently utilized in the biofuel sector, leaving a vast 85% untapped. As technology and supply chains improve, more waste will enter this sector, highlighting its immense potential. The advent of a global biofuel alliance will bring uniform regulations and quality standards worldwide and open up a huge global potential for biofuels. Over the next 5-10 years, green hydrogen is set to emerge as a major player, further adding another dimension to the biofuel market and creating new market dynamics.

We initially focused on Tamil Nadu, particularly West TN, which combines both agricultural and industrial strengths. Here, supply and demand are closely aligned. However, in Northern India, there's a notable disparity between supply locations and demand centers, leading to different market dynamics and consumer behaviors. Throughout India, client relationships hold significant value, but in the South, contractual agreements are more binding. Conversely, as we head North, the emphasis shifts from contracts to relationship-building for market expansion.

StartupTalky: What lessons did your team learn in the past year, and how will these inform your future plans and strategies?

Kishan Karunakaran: A key lesson learned over the past year was the importance of differentiating our approach for acquiring new users versus re-engaging existing ones. We discovered that tailored strategies for these distinct groups led to more effective marketing and higher engagement rates. This insight has been instrumental in shaping our marketing strategies moving forward. We now employ more targeted and personalized approaches depending on the audience segment, leading to more successful campaigns and a stronger overall market presence.

StartupTalky: How do you plan to expand the customers, product, and team base in the future?

Kishan Karunakaran: Looking ahead, Buyofuel is poised for expansion on multiple fronts. We aim to tap into new geographic markets, thereby widening our customer base and increasing market penetration. Product diversification is also on the horizon, with plans to introduce an expanded range of biofuel products to meet the growing and varied demands of the market. In terms of team growth, we are focused on attracting and nurturing talented professionals who can bring fresh ideas and skills to our company, thereby driving innovation and excellence in every aspect of our business.

StartupTalky: One tip that you would like to share with people reading this article who want to get into entrepreneurship?

Kishan Karunakaran: From our experience, always keep learning and stay updated with what's happening. Being open-minded, ready to unlearn old ways, and eager to embrace new methods are essential traits for anyone stepping into entrepreneurship.

StartupTalky extends its gratitude to Mr. Kishan Karunakaran for dedicating his valuable time and generously sharing his insights with all of us.

Explore more Recap'23 Interviews here.