New Delhi, Oct. 9 -- The National Bank for Agriculture and Rural Development (NABARD) has marked the first close of its second flagship fund, launched through its venture capital arm Nabventures.
NABVENTURES Fund II secured capital commitments of Rs 450 crore ($46.5 million). It is targeting a corpus of Rs 1,500 crore, including a greenshoe option. NABARD is the anchor investor in the fund.
The vehicle will invest in high-potential companies at the early and growth stages across agriculture and the rural economy. It will focus on businesses leveraging technology, scalable models and sustainable solutions to address challenges across the agricultural value chain and rural markets.
The sectoral focus will include agri-tech, food and agribusiness, rural fintech, climate-smart solutions, supply chain and logistics, and other innovations aimed at transforming rural economies.
"Through Fund II, we aim to partner with visionary entrepreneurs developing innovative solutions to address critical challenges across the agricultural ecosystem," said Shaji Krishnan V, chairman of NABARD. "Our focus is on supporting enterprises that deliver both strong commercial outcomes and meaningful social impact through sustainability, climate resilience, financial inclusion, and livelihood creation."
By deepening support for the innovation ecosystem, NABARD seeks to accelerate the transformation of India's agriculture and rural economy, making it more resilient, competitive, and future-ready, Krishnan added.
The fund will also leverage NABARD's nationwide presence and sectoral expertise to help portfolio companies scale their businesses and expand their impact on agricultural and rural development.
Through its earlier funds, Nabventures has invested in 23 companies. The predecessor vehicle, launched in 2019, had a target of Rs 700 crore ($100 million then), including Rs 200 crore in greenshoe option. It closed after collecting Rs 598 crore. The first fund's portfolio includes companies such as Hatti Kaapi, Jai Kisan, Unnati, and Vilcart.
NABARD was also the anchor investor in the first fund, committing Rs 25 crore, according to its annual report.
NABARD also operates AgriSURE (Agri Fund for Start-ups and Rural Enterprises), a Category-II AIF launched in September 2024 with a corpus of Rs 750 crore. It received Rs 250 crore each from the Department of Agriculture and Farmers' Welfare and NABARD, with the remaining amount raised externally. It marked its first close in 2025.
Published by HT Digital Content Services with permission from VC Circle.