The National Bank for Agriculture and Rural Development (NABARD) is all set to launch an agri fund for startups and rural enterprises with an initial corpus of Rs 750 crore (around $90 million).
NABARD and India’s Ministry of Agriculture are set to pump in Rs 250 crore each, the remaining amount will come from other institutions. India is looking to promote investments in innovative, technology-driven, high-risk, and high-impact activities in agriculture and allied areas.
Managed by NABVENTURES, a wholly-owned subsidiary of NABARD, the Agri-SURE fund is structured to support approximately 85 agri startups with investment sizes of up to Rs 25 crore each by the end of its term, per a statement.
The fund will provide support through investments in sector-specific, sector-agnostic, and debt Alternative Investment Funds (AIFs), as well as direct equity support to startups.
“The broader objective of this initiative is to address the flailing issues for agri and rural sector. We need innovation and technology to ensure the last mile delivery of resources,” said AK Sahu, Joint Secretary, Department of Agriculture & Farmers Welfare. “Most of our farmers hold small pieces of land, in this ecosystem we need to focus on enhancing productivity, this is where technology can play a crucial role. We need to foster an ecosystem for systematic mechanization to achieve our objectives. Agri-SURE is a big leap in that direction.”
Meanwhile, Shaji KV, Chairman of NABARD, added: “Digitalisation of agriculture is the call of the hour in order to enhance the agri value chain as the next wave of growth will come from innovation. Fintech innovation in agriculture is one of the important aspects for the last mile connectivity with minimum expenses.”
Agriculture in India, alongside the allied sectors, is the largest provider of livelihood in India—especially in rural areas and its next level of growth is expected to come from innovations that need to be co-partnered by public and private institutions.
