BiofuelCircle Raises ₹35 Crore to Expand Biomass Supply Chain

Bioenergy supply chain startup BiofuelCircle has secured ₹35 crore (approximately $3.6 million) in a bridge funding round. The investment was led by existing investor Spectrum Impact, with participation from Better Capital and Karma Capital Advisors.

The company plans to use the funds for working capital requirements and to expand its biomass sourcing ecosystem. BiofuelCircle operates a hybrid digital and physical marketplace connecting farmers, biomass aggregators, biofuel manufacturers, and industrial consumers across 800 villages in 10 Indian states.

Founded in 2020, the startup's valuation has reportedly increased to approximately ₹615 crore. BiofuelCircle is targeting a larger Series B funding round early next year. For the fiscal year 2026, the company reported operating revenues of ₹160 crore, a more than threefold increase from the previous year, and expects to nearly triple revenue to around ₹500 crore in FY27.

BiofuelCircle competes with other biomass aggregators and feedstock supply companies in India. The market is experiencing renewed momentum due to increased investments in compressed biogas and other biofuels, supported by government initiatives aimed at reducing fossil fuel imports and managing organic waste.