NABVENTURES Marks First Close of Rs 1,500 Crore Fund at Rs 450 Cr

NABVENTURES, the venture capital arm of NABARD, has announced the first close of its second fund at Rs 450 crore. The investment firm is targeting a total corpus of Rs 1,500 crore, including a greenshoe option.

The fund will focus on early and growth-stage startups using technology to solve problems across agriculture, rural markets and the wider rural economy.

NABARD, India’s leading agriculture-focused financial institution, is the anchor investor in the fund.

Focus on Agritech and Rural Businesses

NABVENTURES plans to invest in startups working across different parts of the agriculture and rural economy.

The new fund will look at sectors such as agritech, food and agribusiness, rural fintech, climate-smart solutions, supply chain and logistics, along with other businesses focused on rural transformation.

The firm will also back companies working on sustainability, climate resilience, financial inclusion and livelihood creation.

According to NABARD Chairman Dr Shaji Krishnan V, the fund will focus on businesses that can use technology to create a stronger and more sustainable rural economy.

NABVENTURES Builds on Existing Portfolio

NABVENTURES was incorporated on April 23, 2018, as a wholly owned subsidiary of NABARD. It was created to invest in businesses working across agriculture and rural development.

Apart from its new Fund II, NABVENTURES invests through NABVENTURES Fund I and AgriSURE.

Its existing portfolio includes startups such as Unnati, Eggoz, Beyond Snack and Jai Kisan, along with several other companies.

Across its earlier funds, NABVENTURES said it has backed 23 enterprises, giving the firm an established portfolio in India's agritech and rural startup ecosystem.

One recent example is Aquapulse, an aquaculture-focused agritech startup that is currently raising ₹25 crore in a Series A round led by NABVENTURES and KisaanSay through the AgriSURE Fund.

Agritech Funding Faces a Slowdown

The new fund comes at a time when investor interest in India's agritech sector has cooled.

Agritech startups raised around $202 million across 36 deals in 2025, down nearly 25% from $269 million in 2024.

The gap is even larger compared with the sector's stronger funding years. Agritech startups raised around $728 million in 2021 and $840 million in 2022.

Investors have become more careful about capital-heavy business models, high customer acquisition costs and weak monetisation. Marketplace and logistics-focused agritech startups have faced particular pressure.

Investors Become More Selective

The funding slowdown is also part of a broader change in India's startup market.

In Q3, total Indian startup funding increased around 5% to $2.2 billion, but the number of deals declined 13%. The active investor pool also fell 24%.

This shows that investors are becoming more selective and are increasingly focusing on startups with strong business models and clear long-term potential.

Against this backdrop, NABVENTURES' Rs 1,500 crore target fund could provide much-needed capital to startups working on agriculture, rural finance, climate solutions and other areas linked to India's rural economy.

Key Numbers

• Rs 450 crore - First close of NABVENTURES Fund II
• Rs 1,500 crore - Target corpus, including greenshoe option
• 23 startups - Enterprises backed through earlier funds