Exciting news for agricultural startups, The Government Set To Launch Rs 750 Crore Fund For Agricultural Innovation

In order to stimulate investment and bolster expertise across the agricultural and associated sectors’ value chains, the Indian government is poised to introduce a dedicated fund of 750 crores to bolster and amplify the activities of technology-driven agricultural startups and rural enterprises. As per sources referenced by Financial Express, the Ministry of Agriculture will launch the “Mixed Funding Support” initiative, which entails collaboration with the private sector to fund startups pertinent to agricultural and rural enterprises. These startups will be overseen by a subsidiary company under the full ownership of Nabard, a supportive venture capitalist firm.

Under the “Agri-Shore” scheme, out of the total fund of 750 crores, both the Ministry of Agriculture and Nabard will contribute 250 crores each, while the remaining 250 crores will be sourced from private investors and institutions.

The report additionally indicates that the fund’s objective is to facilitate the expansion of approximately 85 startups over the next five years, providing each with funding of up to 25 crores. A distinct trust will be established within Nabard to formalize the fund’s registration with the Securities and Exchange Board of India (SEBI).

According to officials, the targeted beneficiaries will encompass startups engaged in diverse sectors such as agricultural technology, food processing, animal husbandry, fisheries, supply chain management, agricultural mechanization, and biotechnology. Pre-launch preparations for Agri-Shore are presently underway.