Bioenergy supply chain startup BiofuelCircle has raised ₹35 crore ($3.6 million) in a bridge funding round led by existing investor Spectrum Impact, with participation from Better Capital, Karma Capital Advisors, the startup’s promoters, and other angel investors, according to inc42.com. The Pune-based company’s valuation increased about 10% from ₹560 crore post-Series A to approximately ₹615 crore. Founded in 2020 by Suhas Baxi and Ashwin Savé, BiofuelCircle plans to use the funds to support working capital requirements and expansion.
BiofuelCircle operates a hybrid digital and physical marketplace connecting farmers, biomass aggregators, biofuel manufacturers, and industrial consumers across 800 villages in 10 states, including Haryana, Punjab, Uttar Pradesh, Gujarat, Maharashtra, and Andhra Pradesh, inc42.com reports. The startup manages about 80 biomass banks that serve as collection and storage centers, aggregating crop residue from around 2,000 farmers before supplying it to biofuel manufacturers and industrial customers. It also owns specialized post-harvest machinery and trains local tractor operators to use the equipment, while managing payments digitally through its platform.
The bridge funding round follows BiofuelCircle’s Series A round, which valued the company at ₹560 crore. The startup’s integrated supply chain model addresses challenges in biomass sourcing and logistics, a critical component for biofuel production in India. The company’s approach supports sustainable agriculture by reducing crop residue burning and enabling cleaner energy production. BiofuelCircle’s expansion aligns with growing interest in renewable energy and the government’s push for cleaner fuel alternatives, positioning it alongside other bioenergy startups in the sector.
BiofuelCircle is targeting a larger Series B funding round early next year and plans to raise ₹70 crore in working capital financing over the coming months to further support its growth, inc42.com states. The fresh ₹35 crore bridge funding will help the startup scale operations and strengthen its biomass supply chain ecosystem across multiple states.