Biomass and biofuels marketplace BiofuelCircle raised Rs 45 Cr from Spectrum Impact

BiofuelCircle, a marketplace for biomass and biofuels, raised Rs 45 crore ($5.3 million) in funding led by Spectrum Impact with participation from a few angel investors and the company’s promoters.

According to BiofuelCircle’s regulatory filing retrieved from RoC, the board has decided to issue 3,27,551 compulsory convertible preference shares to raise Rs 45 crore, or roughly $5.3 million.

The remaining funds have not yet been disbursed by the investors; the company has already received Rs 24.3 crore. It had previously raised $2 million from Better Capital, Spectrum Capital, and other investors.

The company’s post-allotment valuation, according to media estimates, is approximately Rs 282 crore, or $34 million.

BiofuelCircle was established in 2020 to create a dependable and well-organized biomass and biofuels supply chain. Farmers who need to sell their agricultural residue are identified by the platform, which then links them to local storage facilities. The platform also links the factories or refineries where the biomass would be sold with these storage companies. The industrial customers who buy the biomass are also connected to these refineries.

In addition, it lets customers sign up for postpaid or prepaid subscription plans that give them access to value-added services on the BiofuelCircle marketplace.

Buyofuel, which is supported by Inflection Point Venture and Venture Catalysts, is a direct rival of BiofuelCircle.

During the fiscal year that ended in 2023, the Pune-based company saw a 5x growth in its operating revenue, reaching Rs 11 crore. That same period, though, saw an 80% increase in losses to Rs 6.8 crore. For FY24, the company has not yet submitted its annual statement.

Lead backer Spectrum has made investments in several growth-stage companies, including Kreedo, Atomberg, Falcon Labs, Dozee, Miko, Log9, Turno, Blue Sky Analytics, and others.