BiofuelCircle has raised Rs 35 crore in bridge funding to strengthen working capital and expand its biomass supply chain ecosystem. The round was led by existing investor Spectrum Impact, with participation from Better Capital, Karma Capital Advisors, the company’s promoters and angel investors. The Pune-based startup is preparing for a larger Series B round in early 2027 and is also targeting around Rs 70 crore in working-capital financing over the coming months.
Founded in 2020 by Suhas Baxi and Ashwin Save, BiofuelCircle operates a hybrid digital and physical marketplace connecting farmers, biomass aggregators, biofuel manufacturers and industrial consumers. The company aggregates agricultural residue and supplies it into the biofuel and industrial energy ecosystem. Its model combines a software platform, physical biomass banks, machinery ownership, trained local operators and digital payments.
The company currently operates across about 800 villages in 10 states, including Haryana, Punjab, Uttar Pradesh, Gujarat, Maharashtra and Andhra Pradesh. It runs around 80 biomass banks that function as collection and storage centres for crop residue. Around 2,000 farmers are connected to the network. BiofuelCircle also owns specialised post-harvest machinery, trains tractor operators to use it, and manages payments through its digital platform.
The fresh capital will be used primarily to meet working-capital requirements. The company has already completed infrastructure investments funded by its previous Rs 100 crore Series A round and is now focused on increasing utilisation from those assets. The latest round values the company at around Rs 615 crore, about 10% higher than the post-money valuation from its Series A round.
The business sits at the intersection of climate infrastructure, rural supply chains and industrial decarbonisation. India generates large volumes of agricultural residue, but the commercial conversion of that residue into usable bioenergy depends on aggregation, storage, quality control, transport economics and reliable demand. The logistics problem is fragmented and local, while the demand side increasingly includes industrial customers seeking cleaner fuel alternatives.
BiofuelCircle’s digital-physical model attempts to make that market more dependable by creating traceable supply, standardising farmer and aggregator participation, and coordinating fulfilment for biofuel manufacturers and industrial buyers. The bridge round is therefore less a conventional app-platform funding event and more a working-capital and utilisation story tied to hard infrastructure. The company’s goal of tripling revenue this fiscal year will depend on how efficiently it can turn village-level aggregation assets into higher-throughput supply corridors.
