Biomass Marketplace Secures Capital to Expand Digital Biofuel Ecosystem and Agri-Residue Supply Chain
Biomass and biofuel marketplace BiofuelCircle has raised ₹35 crore in a fresh funding round led by Pooja Unichem LLP, with participation from Varanium Venture, Rajeev Kumar, Karma Capital Advisors Private Limited, and several other investors. The latest investment will support the company’s expansion plans as it strengthens its digital marketplace connecting farmers, biomass suppliers, and industrial buyers.
The Pune-based startup has also approved an additional ₹5 crore debt raise through the issuance of non-convertible debentures (NCDs) to Varanium Venture, taking the total capital raised through the latest financing exercise to ₹40 crore.
The funding underscores growing investor interest in India’s clean energy and biomass ecosystem as industries increasingly adopt sustainable fuel alternatives.
Fresh Equity and Debt Capital Approved
According to regulatory filings accessed by Entrackr, BiofuelCircle’s board has approved the issuance of 113,306 Non-Cumulative Compulsorily Convertible Preference Shares (NCCCPS) at an issue price of ₹2,648 per share, raising ₹35 crore in equity funding.
In a separate board resolution, the company also approved the issuance of 500 non-convertible debentures (NCDs) with a face value of ₹1 lakh each to Varanium Venture, raising an additional ₹5 crore.
The combined funding is expected to strengthen the company’s balance sheet while supporting its next phase of business expansion.
Pooja Unichem LLP Leads the Round
Pooja Unichem LLP emerged as the largest investor in the funding round with an investment of ₹22.40 crore.
Other participants included Rajeev Kumar, who invested ₹3 crore, followed by Ashish Kumar with ₹2 crore, and Karma Capital Advisors Private Limited, which contributed ₹1 crore.
Additional investments came from Better Advisors LLP and Shridhar Shukla, each investing ₹50 lakh, while Amitabha Mukhopadhyay and Lexcelon Corporate Advisors Private Limited invested ₹25 lakh each.
Several individual investors, including Ratnaprabha Mahendra Shukla, Shubham Khandelwal, and Aruna Khandelwal, also participated in the round.
Valuation Rises Above ₹600 Crore
Based on Entrackr’s estimates, the latest fundraising has increased BiofuelCircle’s valuation to approximately ₹638 crore.
This represents a 21.5% increase over its previous valuation of around ₹525 crore, reflecting investor confidence in the company’s business model and long-term growth prospects.
The latest funding comes less than a year after BiofuelCircle raised ₹70 crore (around $8.2 million) in August 2025 from existing investor Spectrum Impact, along with angel investors and company promoters.
The continued valuation growth highlights increasing optimism around India’s renewable energy and biomass value chain.
Building India’s Digital Biomass Marketplace
Founded in 2020, BiofuelCircle operates a technology driven marketplace that connects farmers, biomass suppliers, transporters, and industrial buyers.
The platform enables efficient price discovery, logistics management, and trade finance, simplifying transactions across the biomass supply chain.
One of the company’s core objectives is helping farmers monetize agricultural residue that would otherwise remain underutilized or be burned, contributing to environmental pollution.
By creating a structured digital marketplace, BiofuelCircle supports the supply of biomass feedstock for industries using renewable energy solutions.
The company generates revenue through a combination of subscription fees and transaction-based services.
Revenue Continues to Grow
Although BiofuelCircle is yet to file its financial statements for FY26, the company’s previous financial performance indicates continued business growth.
According to filings, operating revenue increased to ₹50.7 crore in FY25, compared with ₹29 crore in FY24, representing strong year-on-year growth.
At the same time, the company’s net loss widened to ₹6.51 crore from ₹4.9 crore during the previous financial year, reflecting continued investments in technology, operations, and business expansion.
The latest capital infusion is expected to support scaling efforts while strengthening the company’s marketplace infrastructure.
Growing Opportunity in Biofuels
India’s renewable energy transition has accelerated demand for alternative fuels, with biomass emerging as a critical component of the country’s clean energy strategy.
Government initiatives promoting biofuels, agricultural waste utilization, and carbon emission reduction have created significant opportunities for technology platforms operating in this segment.
BiofuelCircle aims to improve supply chain efficiency while creating additional income opportunities for farmers through organized biomass trading.
With fresh funding, an increased valuation, and continued revenue growth, the company appears well-positioned to capitalize on the expanding demand for sustainable fuel solutions.
As industries increasingly adopt cleaner energy sources, digital biomass marketplaces like BiofuelCircle are expected to play an important role in strengthening India’s renewable energy ecosystem.
