BiofuelCircle raises Rs 35 crore to bolster its biomass supply business

Mumbai-based biomass aggregation and supply company BiofuelCircle has raised Rs 35 crore in bridge funding from its existing investors to strengthen its working capital and support the next phase of growth. The funding round was led by Spectrum Impact, with participation from Better Capital, Karma Capital and other existing backers.

The newly raised capital will primarily be used to meet working capital requirements and scale up the company’s biomass supply operations. It will also complement additional financing facilities, helping BiofuelCircle further strengthen its biomass aggregation infrastructure and expand its operational network. The company aims to build a more efficient, transparent and reliable biomass ecosystem to support India’s clean energy transition.

Founded in 2020, BiofuelCircle operates a digital platform that connects farmers, biomass aggregators, suppliers, transporters and industrial buyers. Through technology-driven price discovery, logistics management, quality assurance and trade facilitation, the platform enables efficient biomass sourcing while unlocking value from agricultural residue. This ensures consistent and reliable biomass availability for industries shifting towards cleaner fuels.

Over the past year, the company claims to have significantly expanded its footprint, now operating across 10 states. Its network includes more than 1.7 lakh farmers, 1,300+ biomass suppliers and over 400 industrial customers across 800 villages. In FY26, BiofuelCircle also added 50 new Biomass Banks, further strengthening its supply chain and digital marketplace.

Suhas Baxi, Co-founder & Group CEO, BiofuelCircle, stated, “This bridge round reflects the continued confidence of our existing investors in BiofuelCircle’s long-term vision. Over the past few years, we have invested in building the infrastructure required to organise India’s biomass supply chain at scale. With this foundation now in place, our focus is on leveraging this infrastructure to drive the next phase of growth.”

With rising demand for sustainable biomass driven by India’s push for energy security, decarbonisation and circular economy models, BiofuelCircle says that its well positioned for growth. The company is now gearing up for its next expansion phase ahead of a planned Series B funding round.