Digital biomass and biofuel marketplace BiofuelCircle founded by Suhas Baxi has secured Rs 35 crore in a fresh funding round, strengthening its balance sheet as it prepares for the next phase of growth.
The round saw participation from Varanium Venture, Rajeev Kumar, Karma Capital Advisors Private Limited and several individual and institutional investors. The company’s board approved a combination of compulsorily convertible preference shares and non-convertible debentures to raise the capital.
BiofuelCircle will issue 113,306 non-cumulative compulsorily convertible preference shares at Rs 2,648 apiece. The board also cleared the issuance of 500 non-convertible debentures with a face value of Rs 1 lakh each to Varanium Venture, adding Rs 5 crore to the overall transaction.
One of the participating investment entities contributed Rs 22.40 crore, making it the largest investor in the round. Rajeev Kumar invested Rs 3 crore, while another investor infused Rs 2 crore. Karma Capital Advisors Private Limited committed Rs 1 crore.
Better Capital and Shridhar Shukla invested Rs 50 lakh each. Amitabha Mukhopadhyay and Lexcelon Advisors Private Limited contributed Rs 25 lakh apiece. Ratnaprabha Mahendra Shukla, Shubham and Aruna Khandelwal collectively added another Rs 10 lakh.
BiofuelCircle’s valuation rises 21.5%
Following the latest capital infusion, BiofuelCircle’s estimated valuation has increased to approximately Rs 638 crore. This represents a rise of about 21.5% from its earlier valuation of nearly Rs 525 crore.
The company plans to deploy the proceeds towards its growth initiatives.
The latest transaction follows an earlier Rs 70 crore funding round backed by existing investor Spectrum, company promoters and a group of angel investors. Together, the two rounds point to sustained investor interest in BiofuelCircle’s attempt to organise and digitise the biomass and biofuel supply chain.
Connecting farmers with industrial buyers
Founded in 2020, BiofuelCircle operates a digital marketplace that connects farmers, suppliers and industries dealing in biomass and biofuels.
Its platform supports price discovery, logistics and trade finance. For farmers, the marketplace creates an avenue to monetise agricultural residue that may otherwise remain underutilised. Industrial buyers, meanwhile, can use the platform to identify and procure biomass and biofuel supplies.
BiofuelCircle earns revenue through a combination of subscriptions and transaction-linked charges.
The company has yet to file its financial results for FY26. In FY25, its operating revenue rose to Rs 50.7 crore from Rs 29 crore in FY24. Its losses also increased during the same period, reaching Rs 6.51 crore.
The fresh funding gives BiofuelCircle additional capital to pursue growth while operating in a sector that depends on bringing together a fragmented network of farmers, suppliers, transporters and industrial consumers through a common digital marketplace.
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