NABVENTURES, the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD), has announced the first close of NABVENTURES Fund II, with commitments of ₹450 crore.
The fund is targeting a total corpus of ₹1,500 crore, including a green-shoe option, according to a release dated 9 October in Mumbai.
Fund size and anchor investor
The ₹450 crore secured so far is about 30% of the ₹1,500 crore target. NABARD is the anchor investor in Fund II. The release did not disclose NABARD’s own commitment, the other investors or the size of the fund before the green-shoe option.
Earlier NABVENTURES funds have collectively backed 23 enterprises. The release called this a strong track record but did not give return figures.
Where the money will go
Fund II will invest in early- to growth-stage companies that use technology, scalable business models and sustainable solutions to address challenges across the agricultural value chain and rural markets.
The release lists these sectors:
- agri-tech
- food and agribusiness
- rural fintech
- climate-smart solutions
- supply chain and logistics
- other innovations driving rural transformation
Beyond growth capital, the fund will use NABARD’s nationwide presence and sectoral expertise to help portfolio companies scale their impact.
What NABARD says
Shaji Krishnan V, Chairman, NABARD, said the first close is “an important milestone” in the bank’s commitment to fostering innovation across India’s agriculture and rural economy.
He said the sector needs scalable, technology-driven solutions that enhance productivity, strengthen value chains, improve farmers’ incomes and build resilient rural enterprises.
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Through Fund II, NABARD aims to partner with entrepreneurs developing innovative solutions to critical challenges across the agricultural ecosystem. “Our focus is on supporting enterprises that deliver both strong commercial outcomes and meaningful social impact,” he said. He listed sustainability, climate resilience, financial inclusion and livelihood creation as the areas of impact.
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He added that, by deepening support for the innovation ecosystem, NABARD seeks to accelerate the transformation of India’s agriculture and rural economy and make it “more resilient, competitive, and future-ready.”
The release did not say when the final close is expected. It also did not name the companies the fund has backed or plans to back.
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