NABVENTURES Fund II raises ₹450 crore at first close, targets ₹1,500 crore corpus
ADVERTISEMENT
NABVENTURES, the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD), has secured commitments of ₹450 crore at the first close of its second fund, which is targeting a corpus of ₹1,500 crore, including a green-shoe option.
The fund will invest in early- and growth-stage companies across agriculture, food and agribusiness, rural fintech, climate-smart solutions, supply chain and logistics, and other areas linked to rural development.
NABARD is the anchor investor in Fund II. The fund will back enterprises using technology, scalable business models and sustainable solutions to address challenges across the agricultural value chain and rural markets.
NABVENTURES will build on the track record of its previous funds, which have collectively invested in 23 enterprises. It will also draw on NABARD’s geographical reach and sectoral expertise to help portfolio companies expand their operations.
Focus on technology-driven rural businesses
Announcing the first close, NABARD chairman Shaji Krishnan V said the fund would support businesses working to improve productivity, strengthen agricultural value chains and raise farmers’ incomes.
“The successful First Close of NABVENTURES Fund II at INR 450 crore marks a significant milestone in NABARD’s enhanced efforts at supporting innovation ecosystems in India’s agriculture and rural economy,” Krishnan said.
He said there was a growing need for scalable, technology-driven solutions as the sector evolved. The fund will focus on enterprises that can deliver commercial returns alongside social impact through sustainability, climate resilience, financial inclusion and livelihood creation.
“Through Fund II, we aim to partner with visionary entrepreneurs developing innovative solutions to address critical challenges across the agricultural ecosystem,” he said.
The fund will provide growth capital to companies across these segments and use NABARD’s sectoral knowledge and network to help them scale. It will also look at businesses working on supply chains, logistics and other solutions aimed at rural transformation.
Krishnan said strengthening the innovation ecosystem would help make India’s agriculture and rural economy more resilient, competitive and future-ready.
The announcement did not specify the number of investments planned under Fund II or the timeline for achieving its target corpus of ₹1,500 crore.