BiofuelCircle, a prominent player in the biomass and biofuel marketplace, has successfully raised Rs 45 crore ($5.3 million) in its latest funding round. The investment was led by Spectrum Impact, with contributions from several angel investors and the company’s promoters.
In a regulatory filing accessed from the Registrar of Companies (RoC), BiofuelCircle’s board approved the issuance of 3,27,551 compulsory convertible preference shares to facilitate this funding round. The company has already received Rs 24.3 crore, with the remaining amount expected to be disbursed by the investors soon. Before this round, BiofuelCircle had secured $2 million from Spectrum Capital, Better Capital, and other investors.
Founded in 2020, BiofuelCircle is dedicated to establishing an efficient and organized supply chain for biomass and biofuels. The platform plays a crucial role in connecting farmers who have agricultural residue with nearby storage facilities. These facilities then supply the biomass to refineries, which in turn provide it to industrial consumers. Additionally, BiofuelCircle offers subscription plans—both prepaid and postpaid—that grant access to various value-added services on its marketplace.
The company faces competition from Buyofuel, which is supported by Inflection Point Venture and Venture Catalysts.
Based in Pune, BiofuelCircle reported a significant 5x growth in operating revenue, reaching Rs 11 crore for the fiscal year ending 2023. However, the company’s losses also surged by 80%, totalling Rs 6.8 crore during the same period. The annual statement for FY24 is yet to be filed.
Spectrum Impact, the lead investor, is known for its involvement in growth-stage startups including Atomberg, Falcon Labs, Dozee, Miko, Log9, Turno, Blue Sky Analytics, Kreedo, and others.
