NABVENTURES secured ₹450 crore for its second agritech fund's first close. This lands as agritech funding plunged nearly 75% from its 2021-2022 peak. NABARD, the anchor investor, remains bullish despite broader investor caution in the sector.
How We Got Here
NABVENTURES incorporated in April 2018 as NABARD's VC arm, launching its first fund, NABVENTURES Fund I, shortly after. The firm's focus on agritech comes after a sharp investor pullback, with sector funding dropping from $840 Mn in 2022 to $202 Mn in 2023.
The Numbers
- The fund targets a full corpus of ₹1,500 crore, including a greenshoe option.
- Investments will span early to growth stage agritech, rural fintech, food & agribusiness, and climate-smart solutions.
- NABARD remains the anchor investor for the new fund, continuing its role from earlier vehicles like AgriSURE.
- NABVENTURES' portfolio already includes 23 startups such as Unnati, Eggoz, and Beyond Snack.
- Agritech funding plummeted from $840 million in 2022 to just $202 million in 2023, hit by high customer acquisition costs and weak monetization.
What Happens Next
🇮🇳 Why This Matters for India
For thousands of agritech founders in Tier-2 and Tier-3 cities tackling supply chain gaps or climate resilience, this fund offers a rare institutional lifeline amidst the current funding drought.
The Take
NABARD's anchor investment positions this fund as a crucial long-term vehicle for rural economic resilience, not simply another market-driven bet. Expect more patient capital and impact-driven mandates to stabilize agritech sectors where pure-play private funds have become scarce.
Source:
Inc42 ↗