NABVENTURES, the venture capital arm of the National Bank for Agriculture and Rural Development (NABARD), has completed the first close of its second fund at ₹450 crore. The firm is seeking a total corpus target of ₹1,500 crore, which includes a greenshoe option, to back early-stage and growth-stage technology startups across India's agricultural and rural economy.
Broad Scope Across Rural Infrastructure
NABARD acts as the anchor investor in the vehicle. NABVENTURES intends to focus investments on companies addressing challenges throughout the agricultural value chain, including agritech, food and agribusiness, rural fintech, climate-smart solutions, supply chain operations, and logistics. According to NABARD chairman Dr. Shaji Krishnan V, the fund's mandate targets long-term sustainability, climate resilience, financial inclusion, and rural job creation.
Building on Previous Deployment
Incorporated in April 2018 as a wholly owned subsidiary of NABARD, NABVENTURES has previously deployed capital through NABVENTURES Fund I and the AgriSURE fund. The firm's existing portfolio includes 23 enterprises, such as Unnati, Eggoz, Beyond Snack, and Jai Kisan. Earlier in 2026, aquaculture startup Aquapulse secured ₹25 crore in an ongoing Series A round co-led by NABVENTURES through the AgriSURE initiative.
Countering Sector Investment Pullback
The fund announcement arrives during a contraction in venture funding for Indian agritech. Total venture capital raised by agritech startups reached $202 million across 36 deals in 2025, marking a 25 percent drop from $269 million in 2024 and falling significantly below the $728 million and $840 million recorded in 2021 and 2022, respectively. Investors have shifted away from capital-heavy business models, high customer acquisition costs, and low monetization rates in marketplace and logistics-focused agritech firms.
Selective Capital Allocation Trends
The broader startup market in India experienced reduced investor activity despite overall funding growth. In the third quarter, total startup funding rose 5 percent to $2.2 billion, while total deal count fell 13 percent and the active investor base shrank 24 percent. Despite the market pullback, select agritech startups have successfully closed capital rounds, including Balwaan Krishi's $10.4 million Series B in September and Ninjacart's $6 million raise in July.
AI-generated editorial illustration; not a documentary photograph.
Source: NABVENTURES Marks First Close Of ₹1,500 Cr Fund At ₹450 Cr
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