BiofuelCircle Raises ₹35 Crore in Fresh Funding; Valuation Climbs to ₹638 Crore

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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, and several angel investors. The latest investment values the company at around ₹638 crore and will support its next phase of growth in India's clean energy ecosystem.

BiofuelCircle Secures Fresh Capital for Growth

Pune-based biomass and biofuel marketplace BiofuelCircle has raised ₹35 crore in a new funding round led by Pooja Unichem LLP, alongside participation from Varanium Venture, Rajeev Kumar, Karma Capital Advisors Private Limited, and other investors. The fresh capital comes less than a year after the company secured ₹70 crore ($8.2 million) in funding from Spectrum Impact, existing investors, angel investors, and company promoters.

According to the company's regulatory filings, the board approved the issuance of 113,306 Non-Cumulative Compulsorily Convertible Preference Shares (NCCCPS) at an issue price of ₹2,648 per share to raise the equity capital.

Additional Debt Capital Raised

Alongside the equity investment, BiofuelCircle 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 through debt financing.

The blended funding structure provides the company with additional capital flexibility as it scales its digital marketplace and expands its operations across India's biomass value chain.

Pooja Unichem Emerges as Largest Investor

Among the participating investors, Pooja Unichem LLP contributed ₹22.40 crore, making it the largest investor in the round. Rajeev Kumar invested ₹3 crore, while Ashish Kumar infused ₹2 crore. Karma Capital Advisors Private Limited invested ₹1 crore, while Better Advisors LLP and Shridhar Shukla invested ₹50 lakh each.

Additional investments came from Amitabha Mukhopadhyay and Lexcelon Corporate Advisors Private Limited, who invested ₹25 lakh each. Ratnaprabha Mahendra Shukla, Shubham Khandelwal, and Aruna Khandelwal collectively contributed ₹10 lakh to the funding round.

Valuation Rises Over 21%

Based on the latest fundraising, BiofuelCircle's valuation has increased to approximately ₹638 crore, representing a 21.5% increase compared to its previous valuation of around ₹525 crore.

The proceeds from the latest round will be utilised to support the company's expansion plans as it continues building digital infrastructure for India's biomass and biofuel supply chain.

Building India's Biomass Marketplace

Founded in 2020, BiofuelCircle operates a digital marketplace connecting farmers, biomass suppliers, transporters, and industrial buyers. The platform enables efficient biomass procurement through digital price discovery, logistics management, financing support, and transparent transactions.

Its business model combines subscription-based services with transaction revenues, while helping farmers generate additional income by monetising agricultural residue that would otherwise remain unused or be burned.

By streamlining biomass procurement, the company also supports industries transitioning towards cleaner fuel alternatives while contributing to improved agricultural waste management.

Revenue Continues to Grow

Although the company has not yet filed its FY26 financial statements, BiofuelCircle reported strong growth during FY25. Operating revenue increased to ₹50.7 crore, compared with ₹29 crore in FY24, reflecting rising adoption of its digital biomass marketplace.

At the same time, the company's losses widened to ₹6.51 crore from ₹4.9 crore, as it continued investing in business expansion, technology development, and scaling operations.

Growing Demand for Biofuels in India

The fundraising comes as India's biomass and biofuel sector gains momentum, supported by government initiatives promoting renewable energy, sustainable fuel alternatives, and better utilisation of agricultural waste. Increasing industrial demand for biomass-based fuels and efforts to reduce stubble burning are creating significant opportunities for organised digital platforms such as BiofuelCircle.

With stronger financial backing and a growing marketplace, the company aims to further strengthen its position within India's clean energy supply chain.

Funding Snapshot

Outlook

BiofuelCircle's latest funding strengthens its financial position as it expands its digital biomass marketplace amid rising demand for renewable energy solutions. With increasing industry adoption, supportive government policies, and growing farmer participation, the company is well positioned to benefit from India's transition toward cleaner and more sustainable energy sources.

How much funding has BiofuelCircle raised?

BiofuelCircle has raised ₹35 crore in its latest funding round.

Who led the funding round?

The round was led by Pooja Unichem LLP, with participation from Varanium Venture, Rajeev Kumar, Karma Capital Advisors, and several other investors.

What is BiofuelCircle's latest valuation?

Following the latest funding round, BiofuelCircle's valuation has increased to approximately ₹638 crore.

What does BiofuelCircle do?

BiofuelCircle operates a digital biomass and biofuel marketplace that connects farmers, suppliers, logistics providers, and industrial buyers while enabling price discovery, financing, and efficient biomass trading.