Farm Watt Nets ₹32.5 Cr To Bolster Biomass Collection Network For CBG Production

Biotech startup Farm Watt has netted ₹32.5 Cr ($3.3 Mn) in a funding round co-led by India Angel Networks’ VC fund IAN Alpha Fund and Zerodha’s startup investment arm Rainmatter.

The Delhi NCR-based startup, which converts agricultural waste into clean energy, plans to use the funds to expand its biomass collection network by building new aggregation hubs. A portion of the funds will also fuel development of machinery, strengthen the overall supply chain as well as bring in new talent.

Founded in 2023 by ex-Lehmann India director Kumar Neelendu, Farm Watt operates biomass aggregation hubs across rural India, they purchase crop residue from farmers and then process it into products like biogas, biochar, and biomass pellets.

The key aspects of the business include reducing crop residue waste by supplying it to compressed biogas (CBG) plants that generate localised, renewable energy. The startup’s biochar improves soil health and promotes eco-friendly cultivation.

The founder brings in more than 23 years of experience across rural development, agriculture, financial inclusion and sustainable livelihoods, and has worked in renewable energy and bioenergy since 2015.

Farm Watt plans to expand its operations across 11 states, including Punjab, Haryana, Uttar Pradesh, Maharashtra and Tamil Nadu. 

Over time, It plans to develop its own CBG, bio-pellet and biochar plants as it builds a fully integrated circular bioeconomy platform.

The funding comes as the Indian state continues to navigate pollution associated risks associated with farm waste. 

In a bid to promote CBG projects in India, the Central government launched SATAT (Sustainable Alternative Towards Affordable Transportation) initiative in 2018 to convert urban and agricultural waste into eco-friendly fuel to reduce fossil fuel imports and generate rural income.

CBG is produced via anaerobic decomposition of biomass, including agricultural residue (paddy straw), cattle dung, sugarcane press mud, and municipal solid waste. For this, public sector oil marketing companies like Indian Oil and Bharat Petroleum then invite expressions of interest from entrepreneurs to build and operate CBG plants.

It provides farmers with additional revenue for their biomass, cuts carbon emissions, and supplies a direct alternative to conventional CNG in automotive and industrial applications.

Broadly, the country is home to more than 11,000 biotech startups, supported by a large scientific talent pool and rising demand for domestic solutions.

Investor interest has also grown. For instance earlier this month, BiofuelCircle raised ₹35 Cr in a bridge round led by Spectrum Impact while StrainX Bioworks secured $13 Mn from Prime Venture Partners and Leo Capital in May.

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