NABVENTURES Fund II has closed the first stage of its fund with Rs 450 crore, bringing the VC firm closer to its Rs 1,500 crore target, including a green-shoe option.  NABVENTURES is the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD), anchor investor in the fund.

Key highlights

• NABVENTURES Fund II managed to meet the Rs 1,500 crore target in the first closure with Rs 450 crore.
• The fund supports agritech and rural fintech and climate-smart solutions for agriculture and rural livelihoods in India.

The fund will invest in early and growth stage businesses in the agriculture, food, agribusiness and rural markets. It has an investment philosophy that is focused on enterprises in India that rely on technology and scalable business models to solve problems along the agricultural value chain.

Fund Targets Rs 1,500 Crore Corpus With NABARD as Anchor Investor

NABVENTURES Fund II will back businesses in multiple areas, such as agritech, rural fintech, climate-smart solutions and supply chain/logistics. It will also take into account enterprises that are working on the solutions for other issues related to agriculture and rural markets.

The goal of the fund is to finance companies that will use technology to enhance agricultural productivity, boost supply chains and support rural enterprises. It also aims to build sustainability, climate resilience, foster financial inclusion and create livelihoods.

NABVENTURES Fund II aims to invest in early and growth stage companies that have scalable business models to address structural issues and commercial growth. The envisioned corpus of Rs 1,500 crore (including green-shoe option) will give the fund a wide spectrum of investments.

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NABVENTURES Fund II to Leverage NABARD’s Rural Reach

Along with capital, NABVENTURES plans to draw on NABARD’s nationwide presence and sectoral expertise to help portfolio companies expand operations and reach rural markets. This support is intended to help businesses strengthen their presence across agriculture-linked and rural segments.

The new fund builds on NABVENTURES’ earlier funds, which have collectively backed 23 enterprises. Through Fund II, the firm aims to continue supporting companies that combine commercial growth with solutions for India’s agriculture and rural economy.

The fund’s focus on agritech, rural financial services, climate-smart solutions and supply-chain development reflects its stated approach of investing in businesses addressing multiple needs across the agricultural ecosystem. Its investment will focus on companies looking to enhance productivity, make their supply chains more resilient and generate opportunities for rural companies.

The Rs 450 crore first close is expected to target a total of Rs 1,500 crore for the NABVENTURES Fund II to invest in early- and growth-stage startups in the agriculture and rural markets sector.