NABVENTURES, the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD), has secured ₹450 crore in the first close of its second fund, NABVENTURES Fund II. The fund is targeting a total corpus of ₹1,500 crore, including a green-shoe option, to support startups and businesses working across agriculture, food, rural finance and climate-focused solutions.
Anchored by NABARD, the fund aims to invest in early- and growth-stage companies developing technology-led solutions for India’s agricultural value chain and rural economy. The first close marks another step in NABVENTURES’ efforts to support businesses that combine commercial growth with long-term development impact.
Focus on Agriculture and Rural Innovation
NABVENTURES Fund II will invest across sectors including agri-tech, food and agribusiness, rural fintech, climate-smart solutions, supply chain and logistics, and other areas contributing to rural transformation. The fund will look to back businesses that can address challenges such as improving agricultural productivity, strengthening supply chains, expanding access to financial services and building more resilient rural enterprises. It will also focus on solutions that support sustainability, climate resilience, financial inclusion and livelihood creation.
For startups operating in these sectors, access to capital and the ability to scale solutions remain important factors in reaching farmers, rural businesses and other underserved communities. Through Fund II, NABVENTURES aims to support companies that can turn technology and innovative business models into practical solutions for these markets.
NABARD Continues to Back the Fund
NABARD, which serves as the anchor investor in Fund II, is continuing its support for entrepreneurship and innovation across India’s agriculture and rural economy. Commenting on the first close, Dr. Shaji Krishnan V, Chairman of NABARD, said the ₹450 crore milestone reflects the institution’s continued commitment to innovation-led growth in the sector. He highlighted the growing need for scalable, technology-driven solutions that can improve productivity, strengthen agricultural value chains, enhance farmers’ incomes and build resilient rural enterprises.
The fund will focus on entrepreneurs who can deliver both sustainable business performance and meaningful social impact, particularly in areas such as climate resilience, financial inclusion and livelihood development.
Building on an Existing Portfolio
NABVENTURES’ earlier funds have collectively backed 23 enterprises, providing a foundation for its next phase of investments. With Fund II, the firm plans to build on this experience by supporting promising businesses at different stages of growth. Beyond capital, portfolio companies are expected to benefit from NABARD’s nationwide presence and sectoral expertise, which can help them better understand rural markets and expand their reach. This combination of financial backing and access to an established rural development network could be valuable for startups working in sectors where distribution, market access and local partnerships play a significant role in scaling operations.
Supporting India’s Rural Economy
Agriculture and allied sectors continue to play an important role in India’s economy, while rural businesses face evolving challenges related to climate change, access to finance, logistics and market connectivity. These challenges are also creating opportunities for startups to develop solutions that improve efficiency and expand access to essential services. Through its second fund, NABVENTURES is looking to support businesses that can address these gaps while building scalable operations.
With ₹450 crore secured in its first close and a target corpus of ₹1,500 crore, Fund II is positioned to support the next generation of agriculture and rural-focused enterprises. Its progress will depend on identifying businesses that can grow sustainably while delivering measurable value to farmers, rural communities and the wider agricultural ecosystem.
By: Sejal Thakur
