Key Takeaways
- • NABVENTURES, the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD), has held the first close of NABVENTURES Fund II with capital commitments of Rs 450 crore ($46.5 million).
- • The fund targets a total corpus of Rs 1,500 crore, including a greenshoe option, with NABARD acting as anchor investor.
- • Fund II will make early- and growth-stage investments in agri-tech, food and agribusiness, rural fintech, climate-smart solutions, and supply chain and logistics.
- • NABVENTURES' earlier funds have invested in 23 companies, and the predecessor vehicle launched in 2019 had a Rs 700 crore target (about $100 million at the time).
Summary
The National Bank for Agriculture and Rural Development (NABARD) has reached the first close of its second flagship fund, launched through its venture capital arm, NABVENTURES. Fund II has secured capital commitments of Rs 450 crore ($46.5 million) and is targeting a total corpus of Rs 1,500 crore, including a greenshoe option. NABARD is the anchor investor. Other outlets covering the announcement describe NABVENTURES as a wholly owned NABARD subsidiary, which is consistent with its role as the bank's investment arm.
The fund will invest in high-potential companies at the early and growth stages across agriculture and the rural economy. It will prioritize businesses that use technology, scalable models, and sustainable solutions to address challenges across the agricultural value chain and rural markets. Target sectors include agri-tech, food and agribusiness, rural fintech, climate-smart solutions, supply chain and logistics, and other innovations intended to transform rural economies.
NABARD chairman Shaji Krishnan V said the fund aims to partner with entrepreneurs developing innovative solutions to critical challenges across the agricultural ecosystem. He said the focus is on enterprises that combine strong commercial outcomes with social impact in areas such as sustainability, climate resilience, financial inclusion, and livelihood creation. According to Krishnan, the initiative is intended to accelerate the transformation of India's agriculture and rural economy and make it more resilient, competitive, and future-ready. The fund will also draw on NABARD's nationwide presence and sectoral expertise to help portfolio companies scale and expand their impact on agricultural and rural development.
NABVENTURES' earlier funds have invested in 23 companies. The predecessor vehicle, launched in 2019, had a target of Rs 700 crore (about $100 million at the time), including a Rs 200 crore greenshoe. The announcement does not disclose the final close timing or the identities of limited partners beyond NABARD.
The fund will invest in high-potential companies at the early and growth stages across agriculture and the rural economy. It will prioritize businesses that use technology, scalable models, and sustainable solutions to address challenges across the agricultural value chain and rural markets. Target sectors include agri-tech, food and agribusiness, rural fintech, climate-smart solutions, supply chain and logistics, and other innovations intended to transform rural economies.
NABARD chairman Shaji Krishnan V said the fund aims to partner with entrepreneurs developing innovative solutions to critical challenges across the agricultural ecosystem. He said the focus is on enterprises that combine strong commercial outcomes with social impact in areas such as sustainability, climate resilience, financial inclusion, and livelihood creation. According to Krishnan, the initiative is intended to accelerate the transformation of India's agriculture and rural economy and make it more resilient, competitive, and future-ready. The fund will also draw on NABARD's nationwide presence and sectoral expertise to help portfolio companies scale and expand their impact on agricultural and rural development.
NABVENTURES' earlier funds have invested in 23 companies. The predecessor vehicle, launched in 2019, had a target of Rs 700 crore (about $100 million at the time), including a Rs 200 crore greenshoe. The announcement does not disclose the final close timing or the identities of limited partners beyond NABARD.
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