Bioenergy supply chain startup BiofuelCircle has raised ₹35 Cr ($3.6 Mn) in a bridge funding round led by existing investor Spectrum Impact, with participation from Better Capital and Karma Capital Advisors, the startup’s promoters and other angel investors.

Cofounder and CEO Suhas Baxi told Inc42 that the startup’s valuation has increased about 10% over the ₹560 Cr valuation it attained post its Series A round. This translates to a valuation of about ₹615 Cr. The startup is targeting to raise a larger Series B round early next year and ₹70 Cr working capital financing over the coming months to support expansion.

The freshly raised ₹35 Cr would also be utilised to fulfill working capital requirements.

Founded in 2020 by Baxi and Ashwin Savé, BiofuelCircle operates a hybrid digital and physical marketplace connecting farmers, biomass aggregators, biofuel manufacturers and industrial consumers.

The Pune-based startup operates across 800 villages spread across 10 states, including Haryana, Punjab, Uttar Pradesh, Gujarat, Maharashtra, and Andhra Pradesh.

It operates about 80 biomass banks that act as collection and storage centres where crop residue is aggregated through around 2,000 farmers before being supplied to biofuel manufacturers and industrial customers.

BiofuelCircle also owns specialised post-harvest machinery, trains local tractor operators to use the equipment and manages payments digitally through its platform, creating an end-to-end supply chain for agricultural waste.

Baxi said that the company has already completed infrastructure investments funded through its previous ₹100 Cr Series A funding round and is now focused on extracting higher utilisation from those assets.

In FY26, BiofuelCircle reported an operating revenue of ₹160 Cr, up over 3X from ₹52 Cr a year earlier. With its current infrastructure already in place, the startup expects to nearly triple its revenue to around ₹500 Cr in FY27.

BiofuelCircle generates revenue by purchasing biomass from farmers, storing it in its biomass banks and selling it to biofuel manufacturers and industrial users.

According to the startup, a typical biomass bank requires an investment of about ₹4 Cr, and can generate gross margins of around 20%, with capital being recovered in under four years once operations mature. Its oldest biomass banks are already profitable at the operating level, CEO Baxi said.

On the customer side, BiofuelCircle currently serves about 2,000 biofuel companies and over 600 industrial buyers via its marketplace. It also directly supplies feedstock to compressed biogas (CBG) projects being developed by companies such as IOCL, Reliance and Adani Total Gas, while industrial customers include companies like Unilever, PepsiCo and Coca-Cola.

It plans to spend the current year fully utilising its existing network before expanding further through a Series B round in early 2027. That capital will be used to roughly double the number of biomass banks across India.

The startup competes with biomass aggregators and organised feedstock supply companies such as GPS Renewables, Biomass Aggregators India and several regional players that procure crop residue for CBG plants and biomass power projects.

BiofuelCircle is operating in a market that has seen renewed momentum as India accelerates investments in compressed biogas, sustainable aviation fuel and other biofuels under the National Bioenergy Programme and SATAT initiatives designed to reduce fossil fuel imports and manage organic waste.

A growing pipeline of CBG plants by oil marketing companies and private developers is expected to significantly increase demand for agricultural residue over the next few years. Baxi also believes recent geopolitical disruptions to global energy markets have further strengthened investor and industry interest in domestic bioenergy infrastructure.

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