Indian Startup BiofuelCircle Raises $5.3 Million in Funding Led by Spectrum Impact
Pune-based BiofuelCircle, a biomass and biofuel marketplace, has secured โน45 crore (approximately $5.3 million) in funding led by Spectrum Impact, with participation from a few angels and the companyโs promoters. The funds will be used to further expand the companyโs operations and strengthen its supply chain.
The company has issued 3,27,551 compulsory convertible preference shares to raise the desired amount, with โน24.3 crore having been received so far. BiofuelCircle has a pre-money valuation of โน282 crore (approximately $34 million) post-allotment.
Established in 2020, BiofuelCircle aims to build a reliable and organized supply chain for biomass and biofuels. The platform connects farmers who need to sell their agricultural residue with storage facilities nearby, and then links these storage companies with factories or refineries where the biomass would be sold. In addition, the platform provides buyers with the option to subscribe to prepaid or postpaid plans that offer access to value-added services.
With a 5x growth in operating revenue to โน11 crore during the fiscal year ended 2023, BiofuelCircle directly competes with Buyofuel, a startup backed by Inflection Point Venture and Venture Catalysts. However, the companyโs losses surged by 80% to โน6.8 crore during the same period.
Spectrum Impact has invested in several growth-stage startups, including Atomberg, Falcon Labs, Dozee, Miko, Log9, Turno, Blue Sky Analytics, and Kreedo, among others. This latest funding round is expected to further propel BiofuelCircleโs growth in the biomass and biofuel market.
