BiofuelCircle Secures Rs 70 Crore for Biomass and Biofuel Expansion

BiofuelCircle, a notable biomass and biofuel marketplace, is set to raise Rs 70 crore ($8.2 million) in its latest funding round. The investment is primarily from existing investor Spectrum Impact, along with several angel investors and company promoters. This funding follows a successful $5.4 million Series A round raised in August last year, which was also led by Spectrum Impact, as per reports from Startup Superb.

Details of the Funding Round

The board members at BiofuelCircle have approved a resolution to issue 2,90,798 non-cumulative compulsory convertible preference shares at a price of Rs 2,407 each to acquire the targeted amount. Their filing with the Registrar of Companies (RoC) indicates that the company has already secured Rs 7.25 crore, with the remaining funds anticipated to be received shortly.

Company Valuation and Growth

Startup Superb estimates that the Pune-based company is on a trajectory to be valued at approximately Rs 525 crore (around $62 million), signifying an impressive 86% increase from its previous valuation of Rs 282 crore ($34 million).

About BiofuelCircle and Its Business Model

Established in 2020, BiofuelCircle serves as a digital marketplace for biomass and biofuels, effectively connecting farmers, suppliers, and industries. Utilizing a subscription and transactional model, it facilitates price discovery, logistics, and trade finance, while also aiding farmers in monetising agri-residue.

Funding History

So far, BiofuelCircle has raised approximately $9 million from various investors, including Spectrum Impact and Mumbai Angels, among others.

Financial Performance

BiofuelCircle has experienced significant financial growth, nearly tripling its operating revenue to Rs 29 crore in FY24. The company also managed to decrease its losses by 28%, resulting in total losses of Rs 4.9 crore during the same financial year.

Market Competition

In the competitive landscape, BiofuelCircle faces direct competition from Buyofuel, which is supported by Inflection Point Ventures and LetsVenture.