India:NABARD Announces Rs 700-cr VC Fund for Agriculture & Rural Startups
May. 17, 2019
Till now, NABARD has been contributing to other funds but this is the very first time that the rural development bank has initiated a fund of its own.
According to an official statement, the fund has been launched by Nabventures, which is a subsidiary of NABARD. It has a proposed an amount of Rs 500 crore with a choice to keep over-subscriptions of Rs 200 crore, known as the greenshoe option.
National Bank for Agriculture & Rural Development has given an anchor commitment for the fund that will be investing across startups engaged in farming, food & rural development space, the statement further said.
The statement also mentioned that the funding had its 1st close but particulars of the investments done by the rural development bank & other limited partners, if any, were not available immediately.
Chairman of NABARD Harsh Kumar Bhanwala said the fund will have a high impact because it will give a boost to investment ecosystem in the main areas of agriculture, food & improvement of rural livelihoods.
The statement added Nabventures is now exploring for equity investments in asset-light, pioneering, technology-led start-ups in its central areas. Till so far, NABARAD has contributed Rs 273 crore to 16 alternate investment funds, as per the statement. And it is now 100 % owned by the government that has been focusing on startups through various measures.
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