Investment

NABARD Launches Rs 750 Crore Agri Fund for Startups

• ByStartupStory     |    July 13, 2024

, the National Bank for Agriculture and Rural Development (NABARD) announced the launch of a Rs 750-crore agri fund aimed at supporting startups and rural enterprises. This fund, named ‘Agri-SURE’, was unveiled by NABVENTURES, a subsidiary of NABARD, and is designed to foster investment in innovative, technology-driven, high-risk, and high-impact activities in agriculture and allied areas.

According to the statement released by NABARD, the Agri-SURE fund has an initial corpus of Rs 750 crore, contributed equally by NABARD, the Ministry of Agriculture, and other institutions, with each entity investing Rs 250 crore. This strategic collaboration underscores the commitment of the government and financial institutions to propel the agricultural sector towards sustainable growth and modernization.

The Agri-SURE fund will be managed by NABVENTURES, a wholly-owned subsidiary of NABARD, and is set to support around 85 agri startups with investment sizes of up to Rs 25 crore each by the end of its term. The fund’s multifaceted support structure includes investments in sector-specific, sector-agnostic, and debt Alternative Investment Funds (AIFs), alongside direct equity support to promising startups.

“The 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,” NABARD stated. The initiative aims to invigorate the agricultural landscape through various innovative and technology-driven initiatives.

Key focus areas of the Agri-SURE fund include the promotion of innovative, technology-driven initiatives in agriculture, enhancement of the farm produce value chain, creation of new rural ecosystem linkages and infrastructure, employment generation, and support for Farmers Producer Organizations (FPOs). The fund also aims to encourage entrepreneurship through IT-based solutions and machinery rental services for farmers, driving sustainable growth and development in the agricultural sector.

In its statement, NABARD emphasized the broader impact of the Agri-SURE fund: “Agri-SURE’s focus areas include promoting innovative, technology-driven initiatives in agriculture, enhancing the farm produce value chain, creating new rural ecosystem linkages and infrastructure, generating employment, and supporting Farmers Producer Organizations (FPOs).”

Moreover, the fund seeks to bolster the agricultural sector by encouraging IT-based solutions and providing machinery rental services to farmers, aiming to drive sustainable growth and development.

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