Nabventures, the investment arm of the India-based National Bank for Agriculture and Rural Development (Nabard), is aiming to raise up to Rs 7bn ($99.4m) for a venture capital fund, The Hindu reported yesterday
Indian government-owned development bank Nabard will anchor the fund, which has reached its first close. It is focusing on startups developing technologies focusing on agriculture, food and rural development.
The vehicle has a proposed target of Rs 5bn but has a greenshoe option in place meaning up to Rs 2bn of additional capital can be added. The firm has not disclosed details of the fund’s backers.
Plans for the vehicle originally emerged in December 2018 when Nabventures was launched. Its targeted investment areas are at the heart of Nabard’s strategy, and its funding is intended to help improve local ecosystems and rural livelihoods.
Nabventures intends to facilitate support for rural entrepreneurs from impact investors and public sector bodies, with a focus on early to mid-stage rounds.
Nabard itself has also established at least two India-based incubators for agriculture products, and has committed a total of almost $40m to 16 alternative investment funds, according to a press statement cited by The Hindu.