NABVENTURES, the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD), plans to invest Rs. 30–70 crore in agriculture and rural businesses through its Fund II, targeting enterprises at early and growth stages. The fund will also retain the flexibility to participate in follow-on funding rounds for selected portfolio companies.
According to the press release, Fund has achieved its first close at Rs. 450 crore against a target corpus of Rs. 1,500 crore. The fund aims to support growth-oriented and technology-driven businesses that are innovating across India's agriculture and rural economy.
The investments will focus on strengthening agricultural value chains, improving productivity, enhancing farmers' incomes and building resilient rural enterprises. NABVENTURES also intends to back businesses that combine strong financial performance with measurable contributions to sustainability, climate resilience, financial inclusion and livelihood creation.
Beyond providing capital, the venture capital firm plans to leverage NABARD's institutional network, sectoral expertise and rural reach to help portfolio companies expand market access and scale their operations.
Focus on Series A and Later-Stage Investments
Vikas Bhatt, Managing Director of NABVENTURES, said agriculture and rural transformation remain central to the fund's investment strategy, alongside opportunities in financial services, agricultural value chains, rural enablers and climate solutions.
The fund will seek to invest in scalable businesses with differentiated propositions and strong execution capabilities, using the broader NABVENTURES and NABARD ecosystem to create sustainable impact and long-term value.
Ashish Choudhury, Chief Investment Officer of NABVENTURES, said Fund II builds on the firm's experience with its first fund, with a sharper focus on businesses capable of scaling sustainably in large and growing markets.
He said the fund would primarily target Series A and later-stage investment opportunities, with larger initial ticket sizes aligned with the evolving market dynamics and capital requirements of early- and growth-stage enterprises.
NABVENTURES will assess potential investments based on their growth trajectory, resilient unit economics, differentiated value proposition and disciplined use of capital. The quality, vision and depth of founding teams will also be important considerations.
Emerging Areas Include Agri-Biotechnology and Deep-Tech
Fund II will invest across agriculture and allied activities, agribusiness, agricultural value chains, rural financial services and climate solutions. It will also place greater emphasis on emerging areas such as agri-biotechnology, deep-tech, the circular economy and the blue economy.
Climate has been earmarked as an additional investment theme compared with Fund I, reflecting the fund's broader focus on climate-related opportunities.
The proposed investment range and sectoral focus are intended to diversify the portfolio while allowing NABVENTURES to maintain active portfolio management and provide investee companies with strategic guidance beyond capital.
NABVENTURES' earlier funds have collectively supported 23 enterprises across a range of sectors, including agritech, aquaculture, food processing, rural development, financial services, supply chain solutions, traceability and cold-chain infrastructure.