BiofuelCircle has raised ₹35 Cr in bridge funding to expand its biomass supply chain, aiming to triple revenue and prepare for a Series B raise by 2027.
New Delhi, India Jul 14, 2026 ALN: Bioenergy supply chain startup BiofuelCircle has secured ₹35 Cr (approximately $3.6 million) in a bridge funding round, which was led by existing investor Spectrum Impact. The funding round also saw participation from Better Capital and Karma Capital Advisors, along with contributions from various angel investors. This financial boost is a significant step for BiofuelCircle as it strives to enhance its operations and expand its reach within the biofuel sector.
Cofounder and CEO Suhas Baxi announced that the startup's valuation has increased by approximately 10% following its Series A funding round, raising it from ₹560 Cr to around ₹615 Cr. This increase in valuation reflects the growing confidence investors have in the company’s business model and its potential for future growth. Baxi indicated that the startup is aiming to raise a larger Series B round early next year, alongside a working capital financing target of ₹70 Cr to support its expansion plans.
The newly acquired ₹35 Cr will be strategically allocated to meet working capital requirements, ensuring that the company can maintain its operations and invest in necessary resources to meet the increasing demand for biofuels in India.
Founded in 2020 by Baxi and Ashwin Savé, BiofuelCircle operates a hybrid digital and physical marketplace designed to connect various stakeholders in the biomass supply chain, including farmers, biomass aggregators, biofuel manufacturers, and industrial consumers. This innovative approach facilitates a more efficient supply chain, ultimately contributing to the sustainability of agricultural practices and energy production.
Based in Pune, BiofuelCircle has established its operations across 800 villages in 10 states, including Haryana, Punjab, Uttar Pradesh, Gujarat, Maharashtra, and Andhra Pradesh. The startup manages approximately 80 biomass banks, which serve as collection and storage centers where crop residues are aggregated from around 2,000 farmers before being supplied to biofuel manufacturers and industrial customers. This model not only supports farmers by providing them with an additional source of income but also helps in managing agricultural waste effectively.
In addition to facilitating the aggregation of biomass, BiofuelCircle owns specialized post-harvest machinery and provides training to local tractor operators on how to use this equipment properly. The startup also manages digital payments through its platform, creating a comprehensive end-to-end supply chain for agricultural waste. This digital integration simplifies transactions and enhances transparency, benefiting all parties involved in the supply chain.
Baxi emphasized that the company has already completed infrastructure investments funded through its previous ₹100 Cr Series A funding round. With this infrastructure now in place, BiofuelCircle is focused on maximizing the utilization of these assets to drive revenue growth. In the fiscal year 2026 (FY26), BiofuelCircle reported an operating revenue of ₹160 Cr, a remarkable increase from ₹52 Cr reported the previous year. With the current infrastructure in place, the startup anticipates nearly tripling its revenue to around ₹500 Cr in FY27, showcasing its growth trajectory and market potential.
BiofuelCircle generates revenue by purchasing biomass from farmers, storing it in its biomass banks, and subsequently selling it to biofuel manufacturers and industrial users. The startup claims that a typical biomass bank requires an investment of about ₹4 Cr and can generate gross margins of around 20%, with capital being recouped in under four years once operations mature. Notably, its oldest biomass banks are already profitable at the operating level, indicating a successful business model.
On the customer side, BiofuelCircle currently serves approximately 2,000 biofuel companies and over 600 industrial buyers through its marketplace. The startup also supplies feedstock directly to compressed biogas (CBG) projects developed by prominent companies such as Indian Oil Corporation Limited (IOCL), Reliance, and Adani Total Gas. Its industrial customers include major brands like Unilever, PepsiCo, and Coca-Cola, highlighting the diverse range of industries that rely on BiofuelCircle for their biomass needs.
The startup plans to utilize the current year to fully leverage its existing network before embarking on further expansion through a Series B funding round anticipated in early 2027. The capital raised in this upcoming round is expected to be used to roughly double the number of biomass banks across India, significantly increasing the company's operational capacity and market presence.
BiofuelCircle operates in a competitive landscape that includes biomass aggregators and organized feedstock supply companies such as GPS Renewables, Biomass Aggregators India, and several regional players. These competitors also procure crop residue for CBG plants and biomass power projects, indicating a growing sector that is becoming increasingly vital to India's energy strategy.
The market for biofuels, particularly in India, has seen renewed momentum as the country accelerates investments in compressed biogas, sustainable aviation fuel, and other biofuels under initiatives like the National Bioenergy Programme and the SATAT initiative. These programs aim to reduce reliance on fossil fuel imports and effectively manage organic waste, aligning with broader environmental and sustainability goals.
As India continues to develop its bioenergy infrastructure, there is a growing pipeline of CBG plants being established by oil marketing companies and private developers. This trend is expected to significantly increase the demand for agricultural residue over the next few years, creating a favorable environment for companies like BiofuelCircle. Baxi believes that the recent geopolitical disruptions in global energy markets have further strengthened investor and industry interest in domestic bioenergy solutions, positioning BiofuelCircle to capitalize on this evolving landscape.
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