Pune-based biomass and biofuel marketplace BiofuelCircle is set to raise INR 70 crore (USD 8.2 million) in a new funding round, a big milestone for the company. The round will be led by existing investor Spectrum Impact with participation from a group of angel investors and company promoters as per the regulatory filings.
The board has approved the issue of 2,90,798 non-cumulative compulsory convertible preference shares at INR 2,407 each for the proposed amount. Out of this, the company has already received INR 7.25 crore; the balance will be received soon. This is the second fundraising after the INR 45 crore (USD 5.4 million) Series A round in August 2024, led by Spectrum Impact.
As per the market sources, BiofuelCircle’s new valuation is INR 525 crore (USD 62 million), an 86% growth from its previous valuation of INR 282 crore (USD 34 million).
A Digital Marketplace for Biofuels
Founded in 2020, BiofuelCircle is a digital marketplace for biomass and biofuels, where farmers, suppliers and industries can trade agricultural residue efficiently. Its subscription and transaction-based model supports price discovery, logistics and trade finance and empowers farmers to monetize crop waste.
In the last year, the company has tripled its operating revenue to INR 29 crore in FY24 and reduced losses by 28% to INR 4.9 crore, showing strong operational improvement. To date, BiofuelCircle has raised around USD 9 million (~INR 78.9 crore) from investors including Spectrum Impact, Mumbai Angels and others.
In the competitive landscape, BiofuelCircle’s closest rival remains Buyofuel, backed by Inflection Point Ventures and LetsVenture.
Scaling Up Rural Biomass Infrastructure
Along with the financial growth, BiofuelCircle is aggressively scaling up rural infrastructure in Maharashtra, especially in Nagpur’s Mauda and Bhandara regions. The company has built eight warehouses with advanced machinery like balers and slashers and plans to aggregate 40,000 metric tonnes of paddy straw this season.
The initiative not only solves the environmental problem of stubble burning but also generates new income streams for farmers. Last month, BiofuelCircle launched the Mujbi Biomass Bank near Mauda, with full support from the local authorities. The launch event saw over 100 farmers in attendance who witnessed live demo of agri-waste baling. The bank provides farmers a transparent and secure platform to sell paddy straw, as part of the company’s vision to build a circular economy.
Going forward, the company plans to set up 50 Biomass Banks across India in 2025, 10 in Maharashtra alone. Each bank will serve over 2,000 farmers and create business opportunities for local entrepreneurs and tractor owners.
Circular Economy
BiofuelCircle is using GPS, telematics, and digitally integrated machinery to streamline the biomass supply chain. Long-term vision is to convert agricultural residue into biofuels and other high-value products, with sustainable profitability.
By integrating growth with grassroots infrastructure, BiofuelCircle is positioning itself as a leader in India’s shift to cleaner energy solutions. With increasing investor confidence and farmer participation, the company is showing how environmental responsibility can drive rural economic empowerment.
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