Pune-based biomass and biofuel marketplace BiofuelCircle is gearing to raise ₹70 crore (USD 8.2 million) in a fresh funding round, marking a significant milestone for the company. The round will be led by existing backer Spectrum Impact, alongside angel investors and company promoters, according to regulatory filings, reports IPO Central.
The board has approved the issue of 2,90,798 convertible preference shares at ₹2,407 each. Of this, the company has already received ₹7.25 crore, with the balance expected shortly. This is the second major fundraise after its ₹45 crore Series A round in August 2024, also led by Spectrum Impact.
BiofuelCircle’s latest valuation stands at ₹525 crore (USD 62 million), an 86% increase from its previous valuation of ₹282 crore (USD 34 million).
Founded in 2020, the startup runs a digital marketplace for biomass and biofuels, connecting farmers, suppliers, and industries to trade agricultural residue. Its model supports price discovery, logistics, and trade finance, helping farmers earn more from crop waste.
In FY24, the company tripled its operating revenue to ₹29 crore while reducing losses by 28% to ₹4.9 crore. So far, it has raised around USD 9 million (~₹78.9 crore) from investors including Spectrum Impact and Mumbai Angels. Its closest competitor is Buyofuel, supported by Inflection Point Ventures and LetsVenture.
Alongside financial growth, BiofuelCircle is expanding its rural infrastructure in Maharashtra, particularly in Nagpur’s Mauda and Bhandara regions. The company has built eight warehouses fitted with balers and slashers and aims to aggregate 40,000 metric tonnes of paddy straw this season.
Last month, it launched the Mujbi Biomass Bank near Mauda with local government support. The event drew more than 100 farmers who saw live demonstrations of agri-waste baling. The bank provides farmers with a fair and secure way to sell paddy straw while reducing stubble burning.
“We want to show that what was once considered waste can become a new source of income for farmers,” a company spokesperson said.
Looking ahead, BiofuelCircle plans to establish 50 Biomass Banks across India in 2025, including 10 in Maharashtra. Each bank is expected to serve more than 2,000 farmers and create new opportunities for local entrepreneurs and tractor owners.
The company is also using GPS and digitally connected machinery to make the biomass supply chain more efficient. Its long-term goal is to turn agricultural residue into biofuels and other high-value products, combining profitability with sustainability.
“With growing support from both farmers and investors, we believe this model can deliver clean energy and stronger rural incomes at the same time,” the spokesperson added.
