NABVENTURES, the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD), plans to invest between ₹30 crore and ₹70 crore per company through its second fund, targeting growth-stage businesses operating across India’s agriculture and rural economy.
The fund has completed its first close at ₹450 crore against a target corpus of ₹1,500 crore. It will primarily focus on Series A and later-stage opportunities, while retaining the flexibility to participate in follow-on rounds for select portfolio companies.
Focus on agriculture and rural innovation
NABVENTURES Fund II will invest in agriculture and allied activities, agribusiness, agri-value chains, rural financial services and climate solutions. The fund will also explore emerging areas such as:
Agri-biotechnology.
Deep tech.
Circular economy.
Blue economy.
Climate-focused solutions.
Through these investments, NABVENTURES aims to support businesses working to improve agricultural productivity, strengthen value chains, raise farmer incomes and build more resilient rural enterprises.
Combining capital with institutional support
Beyond financial backing, NABVENTURES plans to leverage NABARD’s institutional network, sector expertise and rural reach to help portfolio companies expand market access and scale their operations.
“Agriculture and rural transformation remain at the core of our thesis, alongside opportunities in financial services, agri-value chains, rural enablers and climate solutions,” said Vikas Bhatt, Managing Director, NABVENTURES.
“We look to back scalable businesses with differentiated propositions and strong execution capabilities, leveraging the NABVENTURES and NABARD ecosystem to create sustainable impact and long-term value,” he added.
Backing scalable businesses
According to Ashish Choudhury, Chief Investment Officer, NABVENTURES, Fund II builds on the experience of its first fund while adopting a sharper focus on businesses with the potential to scale sustainably.
The fund will assess companies based on their growth trajectory, unit economics, value proposition, capital discipline and the strength of their founding teams.
NABVENTURES said its larger investment size will allow it to support companies through important growth stages while maintaining an active role in portfolio management.
Expanding the rural innovation pipeline
NABVENTURES’ earlier funds have collectively backed 23 companies across agritech, aquaculture, food processing, rural development, financial services, supply-chain solutions, traceability and cold-chain infrastructure.
With Fund II, the firm plans to deepen its support for technology-led businesses addressing challenges across agriculture and the wider rural economy. The fund’s focus on climate resilience, financial inclusion, livelihood creation and sustainability also aligns with the growing need for scalable solutions in India’s rural markets.
