NABARD To Launch Rs 1,000-Crore Nabventures Fund II To Boost Rural Startups

New Delhi, Dec 24 (KNN) The National Bank for Agriculture and Rural Development (NABARD) is set to launch a Rs 1,000-crore second fund (Fund II) through its investment subsidiary Nabventures, aimed at boosting innovation and entrepreneurship in rural India.

This upcoming initiative builds on the success of Nabventures’ first fund and reflects NABARD’s expanding role as a strategic investor in rural and inclusive innovation.

Expanded Support for Rural Startups and Innovation

The planned Rs 1,000-crore fund is designed to support early-stage and growth-oriented ventures that address challenges across agriculture, rural services, and climate-resilient technologies. 

Ahead of its formal launch this fiscal year, the fund is expected to prioritise projects that strengthen farm value chains, expand digital services for rural enterprises, and integrate cooperatives and self-help groups into the wider economy.

Nabventures’ first venture fund has already been fully allocated, with investments in nearly 19 companies covering sectors such as agri-tech and rural technology solutions. 

The experience gained from these investments informs the design and focus of the new second fund, which aims for deeper impact by addressing structural gaps in finance and innovation support for rural entrepreneurs. 

Focus on Climate and Rural Development

Industry sources indicate the next fund will have a strong thematic emphasis on climate-smart solutions and rural entrepreneurship, aligning with broader national priorities on sustainable agricultural practices, climate resilience, and inclusive rural growth. 

This approach coincides with reports that NABARD is preparing to launch additional thematic funds, including one focused on green impact and another on carbon-related technologies, together totalling around Rs 1,300 crore for agritech and climate start-ups in early 2026. 

By backing innovative start-ups with scalable solutions for rural and agricultural challenges, NABARD and its subsidiary aim to create job opportunities, strengthen local ecosystems and enhance data-driven rural enterprise capabilities. 

(KNN Bureau)