Indian climate-focused agribusiness startup Farm Watt Innovations has secured ₹32.5 crore ($3.36 million) in a funding round co-led by IAN Alpha Fund and Rainmatter. Founded in 2023 by Kumar Neelendu, the company focuses on aggregating agricultural biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More to supply compressed biogas (CBG) facilities and broader bioenergy enterprises. The newly acquired capital is designated to expand Farm Watt Innovations’ decentralized biomass collection networks, construct new aggregation hubs, acquire advanced processing machinery, and scale its operational workforce across several Indian states.

The investment directly targets India’s severe agricultural residue burning challenge, which sees approximately 92 million tonnes of crop residue burned openly each year. This seasonal burning releases an estimated 34 million tonnes of carbon dioxide into the atmosphere, causing extreme air pollution across northern states and inducing widespread soil degradation. While government incentives like the SATAT initiative have spurred private investment into CBG and renewable bioenergy plants, the sector has suffered from a critical structural gap: the absence of an organized, reliable supply chain capable of gathering distributed agricultural waste and delivering standardized feedstockFeedstock refers to the raw organic material used to produce biochar. This can include a wide range of materials, such as wood chips, agricultural residues, and animal manure. More to downstream processors.

To bridge this gap, Farm Watt Innovations established a technology-enabled aggregation platform centered on block-level decentralized hubs. Operating 15 hubs across six states, the startup coordinates residue collection, baling, quality control, and logistics under standardized operational protocols. The platform provides fair weighing and transparent payment structures to local farmers, converting open crop waste into economic assets. By acting as an intermediary enabler between agricultural producers and bioenergy facilities, the company secures steady feedstock for CBG processors while offering a scalable, market-driven alternative to field burning.

With the funding, Farm Watt Innovations plans to extend its sourcing network into eleven Indian states, including Punjab, Haryana, Uttar Pradesh, and Rajasthan. Beyond expanding biomass aggregation, the company aims to move upstream into project ownership by developing its own facilities for compressed biogas, bio-pellets, and biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More production. The capital injection also supports diversification into digital biomass supply chain management and carbon credit monetization. These developments position the organization to establish a vertically integrated bioeconomy infrastructure that enhances rural livelihoods, reduces greenhouse emissions, and strengthens India’s renewable energy landscape.