NABVENTURES, the venture capital subsidiary of NABARD, announced the first close of its ₹1,500 Cr Fund II at ₹450 Cr, targeting innovative agritech and rural development startups across India.
- First close of second fund at ₹450 Cr with ₹1,500 Cr target
- Focus on agritech, rural fintech, climate resilience, and supply chain startups
- Backing early to growth-stage startups amid slowing sector funding
What happened
NABVENTURES, the venture capital arm of India’s National Bank for Agriculture and Rural Development (NABARD), has announced the first close of its second fund at ₹450 Cr. This fund aims to raise a total corpus of ₹1,500 Cr, inclusive of a greenshoe option, to continue investing in agritech and rural development startups.
Since its inception in April 2018, NABVENTURES has backed 23 agritech startups via its first fund and the AgriSURE Fund. The new fund will double down on early and growth-stage companies leveraging technology to improve the agricultural value chain, rural financial inclusion, climate resilience, and livelihood generation across India.
Why it matters
India’s agritech startup ecosystem has experienced a funding decline in recent years, with investments falling nearly 25% in 2025 compared to 2024. Investor caution around capital-intensive business models, high customer acquisition costs, and weak monetization has contributed to the downturn.
NABVENTURES’ Fund II represents a strategic push to reinvigorate agritech investment by focusing on sustainable, climate-smart, and inclusive rural technologies. The backing by India’s apex agricultural financial institution lends significant credibility and capital to startups addressing critical rural challenges.
What to watch next
Market participants will track how NABVENTURES deploys the ₹1,500 Cr fund across sectors such as agritech, rural fintech, supply chain logistics, and climate solutions. Investments in startups that promote financial inclusion and rural livelihoods will be particularly significant to India’s broader agricultural transformation.
The fund’s success will also be measured against recent notable agritech deals such as Balwaan Krishi’s $10.4 Mn Series B and Ninjacart’s $6 Mn round, assessing whether this fresh capital infusion can spur innovation and growth in an otherwise challenging funding environment.