Pune-based biomass supply chain startup BiofuelCircle has raised ₹35 Cr (approximately $3.6 Mn) in a bridge funding round. The round was led by existing investor Spectrum Impact, with participation from Better Capital, Karma Capital Advisors, the startup's promoters, and other angel investors.
The bridge round gives BiofuelCircle a valuation of about ₹615 Cr, a roughly 10% increase over the ₹560 Cr valuation it reached after its Series A round, cofounder and CEO Suhas Baxi told Inc42.
Operating a marketplace for agricultural residue
Founded in 2020, BiofuelCircle runs a hybrid digital and physical marketplace that connects farmers and biomass aggregators with biofuel manufacturers and industrial consumers. The company aggregates crop residue from rural communities, stores it in a network of 80 biomass banks, and supplies it as feedstock to customers. It also owns specialised post-harvest machinery and trains local operators to use the equipment.
BiofuelCircle operates across 800 villages in 10 states, working with around 2,000 farmers. On the demand side, it serves roughly 2,000 biofuel companies, over 600 industrial buyers, and supplies feedstock to compressed biogas projects run by companies including IOCL, Reliance, and Adani Total Gas. Industrial customers include Unilever, PepsiCo, and Coca-Cola.
Why it matters
The funding reflects growing investor appetite for climate infrastructure that solves a tangible supply-chain bottleneck. India is scaling up domestic bioenergy capacity—compressed biogas, sustainable aviation fuel, and other biofuels—under the National Bioenergy Programme and SATAT initiatives.
That buildout creates a structural need for reliable feedstock supply chains that aggregate agricultural residue, a fragmented resource that is logistically difficult to procure at scale. BiofuelCircle positions itself as the intermediary that makes the bioeconomy work.
The company reported operating revenue of ₹160 Cr in FY26, more than triple the ₹52 Cr it posted a year earlier, and is targeting roughly ₹500 Cr in FY27. Baxi said the startup has completed the infrastructure investments funded by its previous ₹100 Cr Series A and is now focused on higher asset utilisation.
It plans to raise a larger Series B round in early 2027, alongside ₹70 Cr in working capital financing, and expects to roughly double its biomass bank network with that capital.
“We have already completed infrastructure investments and are now focused on extracting higher utilisation from those assets,” Baxi said.
The bridge round will be used to fulfil working capital requirements as BiofuelCircle scales toward its Series B.
