NABVentures (NABARD venture fund for agri-startups)

NABVENTURES (launched under National Bank for Agriculture and Rural Development or NABARD) is a venture-fund initiative in India that supports agriculture and allied-rural startups. It was set up in April 2018, when NABARD incorporated NABVENTURES as its wholly-owned subsidiary.

The scheme responds to a clear problem: many innovative agri-technologies and rural business ideas struggle to get growth capital and support, especially in sectors like ag-tech, food-processing, rural fintech, and supply-chain solutions. The policy needed behind this is to deepen the investment and entrepreneurial ecosystem in agriculture and rural India, to boost productivity, create value-chains, and provide new livelihood models.

NABVENTURES targets entrepreneurs, early- to mid-stage startups working in agriculture, food, rural enterprises and services. It aims to channel benefits – capital, mentorship, networks – into these ventures so they can serve farmers, FPOs (farmer producer organisations) and the broader rural economy.

Overview of the Scheme

The initiative NABARD’s venture arm NABVENTURES Ltd. (the “NABVentures venture fund for agri-startups”) was launched under the auspices of the Government of India via the Ministry of Agriculture & Farmers Welfare (MoA&FW) and NABARD, a central (all-India) development bank. NABVentures was incorporated in April 2018 as a wholly-owned subsidiary of NABARD.

Implementing agency & funding pattern:

• The implementing agency is NABVentures Ltd., which acts as Investment Manager of the scheme, under sponsorship of the Ministry of Agriculture & Farmers Welfare and NABARD.
• A key fund under this venture, the AgriSURE Fund, has a total corpus of ₹750 crore. Contribution breakdown: ₹250 crore from the Government of India (MoA&FW), ₹250 crore from NABARD, and ₹250 crore to be mobilised from other institutions/private investors.

Coverage / sectors/components:
The coverage includes start-ups in agriculture and rural development – for example: agritech, food processing, animal husbandry, fisheries, supply chain management, farm mechanisation, biotechnology, waste management, renewable energy, agri value chain, support for FPOs/co-operatives.

Current status:
The scheme is ongoing, with the AgriSURE Fund designed for a duration of 10 years from inception (extendable by 2 years). Moreover, NABVentures Fund I remains active as the investment vehicle.

Objectives 

These are the key objectives of NABVENTURES Ltd. (venture fund for agri-startups) under the AgriSURE Fund for Start‑ups & Rural Enterprises

• Support start-ups related to agriculture and allied activities by creating an investment-friendly climate and improving their ability to absorb capital.
• Accelerate growth of early-stage agri and agri-tech ventures so that they can scale up and serve the rural ecosystem.
• Increase the number and size of investments by Alternative Investment Funds (AIFs) into agri & agri-tech start-ups serving farmers, FPOs/FPCs and primary cooperatives.
• Encourage young entrepreneurs with innovative, technology-driven ideas willing to take risks in high-impact agriculture and allied sectors.
• Provide liquidity and financing options (equity, debt) to existing agri/start-ups that are stuck due to lack of access to capital, enabling them to scale.
• Strengthen the agricultural value-chain by supporting initiatives that improve forward and backward linkages, mechanisation, farm-produce value systems and rural business models.
• Create additional employment opportunities for rural and urban youth by making agriculture a more attractive business and entrepreneurship option.

These objectives reflect the core goals and purpose of the scheme – to channel investment, boost innovation and transform the agri-startup ecosystem via the agriculture scheme.

Key Features / Benefits 

• Blended capital fund of ₹750 crore
  The fund brings together ₹250 crore each from the National Bank for Agriculture and Rural Development (NABARD) and the Ministry of Agriculture & Farmers Welfare (Government of India) plus another ₹250 crore from other institutions.
  (Example: For a startup needing growth capital, this mixed investment pool can be tapped.)
• Investment via two schemes: FoF & Direct
  The fund has two parts: a ₹450 crore “Fund-of-Funds (FoF)” that invests in other AIFs, and a ₹300 crore “Direct” scheme that invests directly into early-stage startups.
  (Example: A startup might get direct equity under the Direct scheme.)
• Support for up to ₹25 crore per AIF or startup
  Under the FoF scheme the maximum investment into one AIF is up to 5% of its corpus or ₹25 crore, whichever is less. Under the Direct scheme, a startup may receive up to ₹25 crore.
  (Example: A startup may get a ₹20 crore investment if selected.)
• Wide sector coverage
  The fund supports startups in agritech, food-processing, animal husbandry, fisheries, supply chain, farm mechanisation, biotech, waste-management, renewable energy, FPOs/co-operatives, and value chains.
  (Example: A startup offering drone-based crop monitoring falls under agritech.)
• Equity and debt investment options
  It allows investment in equity, equity-related instruments or debt securities via AIFs or direct (early stage) models.
  (Example: A startup might get a loan-type instrument rather than just equity.)
• Duration of fund: 10 years (plus 2-year extension)
  The fund is structured to run for 10 years from inception and may extend by up to two years.
  This provides a long-term horizon for startups and investments.
• Target around 85 startups by end of fund life
  The fund aims to support about 85 agri-startups through the two schemes combined.
  This gives an idea of scale for potential applicants.

Eligibility Criteria 

Who can apply (Eligibility criteria)

The eligibility focuses mainly on start-ups and similar ventures. The official scheme does not list separate eligibility for farmers, SHGs or FPOs as standalone applicants. Instead, it is designed for early-stage enterprises in the agriculture and rural sector. (Sources: FAQs & AgriSURE Fund pages)

For Entrepreneurs / Start-ups / MSMEs

• Be an entity incorporated in India and recognised by the Department for Promotion of Industry and Internal Trade (DPIIT).
• Operates in agriculture, allied rural development, farm-value chain, FPOs support etc (for example agritech, food-processing, mechanisation).
• Be willing to raise equity, equity-related instruments or debt as part of growth financing.
• Mandatory documents: incorporation certificate, DPIIT recognition, business plan or project proposal, financials, etc (as per investment manager’s detailed requirements).

Not Eligible / Restrictions

• Mere qualification does not guarantee investment. The decision rests with NABVENTURES as Investment Manager.
• Activities outside the defined sectors (agriculture/rural enterprises) are not covered.

Application Process

1. Visit the official portal: https://www.nabventures.in (or the NABARD website page: https://www.nabard.org/agrisure.aspx) where initial information is available.
2. Register/Login: Create an account or log into your profile on the portal as a startup or AIF-applicant.
3. Fill the online application form: Provide sections such as (a) applicant details (name, incorporation number, DPIIT recognition), (b) business proposal and sector (agritech / rural enterprise etc.), (c) investment/financing requirement, (d) bank account and contact info.
4. Upload documents: Include registration certificate, DPIIT recognition (for startups), financials/business plan, bank pass-book copy, proof of incorporation, sector-relevance justification.
5. Pay fee if any: (No separate application fee is officially mentioned on the portal.)
6. Submit: On submission you receive an application ID or acknowledgement via email or the portal dashboard.
7. Verification & evaluation: The Investment Manager (NABVENTURES) will review the proposal; field visits may be required if the startup has physical operations (not explicitly stated, so check updates).
8. Approval & funding: If selected, you’ll get an investment agreement and release of funding as per the scheme (up to ₹25 crore per startup in the Direct scheme).
9. Offline route: If needed, you may contact NABVENTURES Ltd., C-24, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Email: agrisure@nabard.org

Tips to avoid mistakes:

• Ensure your company name exactly matches on all documents and portal forms.
• Upload all mandatory documents in correct format; missing documents will delay processing.
• Ensure your startup is clearly operating in one of the eligible agri/rural sectors before applying.
• Keep track of your application ID and check portal notifications regularly for updates.

This process gives you a smooth pathway to apply online for NABVentures’ agriculture scheme.

Challenges or Limitations 

• Challenge → Eligibility doesn’t guarantee funding. Although an applicant meets the criteria, the decision rests on merit and the investment manager’s final call.
  → What to do: Prepare a strong, detailed proposal showing clear impact and business model, not just eligibility check-boxes.
  
  
• Challenge → Limited number of supported startups (~85) and fixed ticket size. With only about 85 start-ups aimed over the fund life, competition is high.
  → What to do: Apply early, highlight unique value, and ensure your startup clearly aligns with the sectors covered.
  
  
• Challenge → Fund is structured for high-risk / high-impact ventures only. It may not fit more conventional, low-risk models.
  → What to do: Emphasise the innovation, risk-return profile and scalability of your model in the application.
  
  
• Challenge → Document and sector-fit mismatch can delay or reject your application.
  → What to do: Check all required documents ahead, verify your startup’s sector closely matches those listed by the fund.
  
  
• Challenge → Funding decision and release may take time given evaluation and approvals.
  → What to do: Plan financials without relying solely on this funding; follow up politely and stay updated on portal/status.

Government Support & Future Outlook 

The fund is designed to converge with broader agriculture-ecosystem schemes. For instance:

• Under the Innovation and Agri‑Entrepreneurship Development Programme (a component of RKVY‑RAFTAAR), start-ups are incubated and supported, and these ventures can later tap NABVentures for growth capital.
• The fund’s background mentions that it will support “machinery for farmers on rental basis at farm level, and technology including IT-based support.” This implies linkage with on-ground programmes like mechanisation, FPO support and value-chain infrastructure.

Practical example: A farmer-producer organisation (FPO) benefits first from a state subsidy scheme for setting up a custom-hiring centre under mechanisation; then the FPO partners with a start-up backed by NABVentures that provides rental machinery and digital tracking. Together the schemes boost farm production, reduce cost and raise income.

Road ahead / update: The fund (named AgriSURE) was formally launched with an initial corpus of ₹750 crore and a 10-year span (extendable by 2 years). This means the scheme aims for long-term convergence, innovation and scaling of agri-ecosystem models.

Conclusion 

The NABVentures (NABARD venture fund for agri-startups) is a key step toward building a stronger, technology-driven rural economy. It helps agritech entrepreneurs, FPOs, and rural enterprises access much-needed growth capital and guidance to create jobs, improve productivity, and serve farmers better. Those planning to apply should first check the eligibility, prepare required documents, and visit the official NABVentures portal at https://www.nabventures.in for accurate updates on benefits and procedures. Always verify the latest details from NABARD or official helplines before applying. Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002628.