BiofuelCircle, a Pune-based biomass marketplace startup, has raised Rs 35 crore in a fresh Series B funding round. The new investment will help the company grow its rural network, improve its digital platform, and expand its biomass supply chain across India.
The funding round values the company at around Rs 638 crore, showing strong investor confidence in its business. The round was led by Pooja Unichem LLP, with participation from Varanium Venture, Rajeev Kumar, and Karma Capital Advisors.
Founded in June 2020 by Suhas Gangadhar Baxi and Ashwin Save, BiofuelCircle connects farmers, biomass suppliers, processors, and industrial buyers through its online platform. The company helps farmers sell agricultural waste, which can be used as a cleaner fuel instead of being burned in fields.
Fresh Funding to Expand Rural Network and Technology
The newly raised money will be used to strengthen BiofuelCircle’s technology platform and increase its network of Biomass Banks, which are storage centres where crop residue is collected before being supplied to industries.
The company already operates in several states, including Maharashtra, Gujarat, Uttar Pradesh, Punjab, Haryana, Tamil Nadu, and Andhra Pradesh. It plans to increase its company-owned warehouses from 15 to 35, with each warehouse having the capacity to store up to 10,000 metric tonnes of biomass.
Along with expanding its physical network, BiofuelCircle is also improving its digital services. Its online marketplace allows buyers and sellers to trade biomass through direct deals, bidding, and digital auctions.
To make the platform easier to use in rural areas, the startup has introduced a WhatsApp chatbot that currently supports five languages and plans to add more languages in the future. It is also developing a field testing tool that can check biomass quality quickly without manual inspection.
Since its launch, BiofuelCircle has processed deals involving around 1.2 million metric tonnes of biomass. It has completed deliveries of more than 600,000 metric tonnes, generating a total gross merchandise value (GMV) of around Rs 520 crore.
Today, the platform has 1,710 registered users, including 354 buyers, 1,356 sellers, and direct connections with nearly 160,000 farmers across India.
Revenue Sees Strong Growth in FY25
BiofuelCircle reported strong financial growth during FY25. The company’s total revenue increased 68% to Rs 51.8 crore, compared to Rs 30.8 crore in FY24.
Most of the revenue came from product sales, which contributed Rs 36.8 crore. Services such as platform fees and commissions added Rs 12.7 crore, while the remaining income came from other business activities.
As the company expanded, its overall expenses also increased. Total spending rose from Rs 38 crore in FY24 to Rs 57.2 crore in FY25. Higher spending on product purchases, logistics, warehousing, employee salaries, finance costs, and business operations led to the increase.
Even with higher costs, the company became more efficient. In FY25, it spent Rs 1.16 to earn every rupee of revenue, compared to Rs 1.31 in the previous year.
There are different reports about the company’s final loss for FY25. Some reports say the loss reduced to about Rs 4 crore, while others report that it increased to Rs 6.51 crore. However, the company continues to focus on expanding its business while improving its operations.
So far, BiofuelCircle has raised around $20.5 million in equity funding across different investment rounds, along with debt financing to support its growth plans.
Helping Farmers Earn More Through Biomass
BiofuelCircle’s business model is designed to create extra income for farmers while supporting clean energy. Instead of burning crop residue after harvest, farmers can sell it through the platform, helping reduce air pollution and earn additional money.
According to the company, farmers can earn around Rs 8,000 to Rs 12,000 every year by selling 5 to 9 metric tonnes of agricultural waste. This creates a new source of income without affecting farming activities.
The company also works with more than 1,000 local aggregation partners, many of whom are tractor owners and rural entrepreneurs. These partners collect and transport biomass using machines such as balers and slashers. According to the company, they can earn between Rs 3 lakh and Rs 10 lakh annually through this business.
BiofuelCircle has already launched projects to reduce stubble burning in states like Uttar Pradesh and has built biomass collection networks in Maharashtra. These efforts help collect agricultural waste that would otherwise be burned in fields.
The company is also benefiting from rising demand for biomass fuel as industries look for cleaner alternatives to coal. Government policies encouraging the use of biomass have further supported this growing market.
Looking ahead, BiofuelCircle plans to expand its franchise network from around 20 locations to 500 by 2028. It also aims to connect 1 million farmers, capture 10% to 20% of India’s biomass market, and process $1 billion worth of transactions every year, making it one of the country’s leading biomass marketplace companies.