NABVENTURES, the venture capital division of the National Bank for Agriculture and Rural Development (NABARD), has received commitments worth Rs 450 crore in the initial close of its second fund.
The fund aims to raise Rs 1,500 crore, including a green-shoe option, with NABARD acting as the anchor investor.
Through NABVENTURES Fund II, the firm plans to invest in early-stage and growth-stage businesses operating in agriculture, food, agribusiness and rural markets.
The fund will target sectors such as agritech, rural fintech, climate-smart technologies, supply chain and logistics, along with other businesses addressing gaps across the agricultural value chain.
Its investment strategy centres on companies leveraging technology and scalable business models to boost farm productivity, improve supply chain efficiency and strengthen rural enterprises. The fund will also prioritise solutions promoting sustainability, climate resilience, financial inclusion and livelihood generation.
Beyond funding, NABVENTURES intends to draw on NABARD’s extensive national network and industry expertise to help portfolio companies scale their businesses and expand their reach into rural markets.
The second fund builds on the firm’s previous investment vehicles, which have collectively supported 23 enterprises. With Fund II, NABVENTURES aims to back businesses that combine commercial expansion with solutions for challenges facing India’s agricultural and rural economy.
