“Agri-Rural Startups”

Satheesan Kartha, DGM/ FM,

BIRD, Mangaluru

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 • Understand Agri-start up eco system in India
• Appreciate the scope available for start-ups in the domain of
agriculture
• Opportunities for FPOs and others to link up with startups
for mutual benefits
• Scope for raising funds – Venture funds, Angel Funds
• Various emerging technologies where start-ups can benefit
Course • Appreciate future of Indian agriculture, agri-financing and
Coverage technical advances

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 • Overview of Start-up Ecosystem in India
• IoT & the future of Start-ups
• Initiatives of NABARD for Start-ups
• Agri-Incubation Centres of NABARD
• Various Start-up Models
• Financing Start-ups – Connecting with Banks / FIs & Venture
Capitalists
• Farmer Producer Organisations & Scope for Linking with
Session Plan AgTech

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 Scalable Business
Model

Bold Entrepreneurial Disruptive Business

Venture Idea

STARTUP

Startup – Key Defining Factors

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 A scalable business model has
potential to multiply revenue
with minimal incremental cost

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 Tips for Building Ideal Scalable Startups
• Scalable idea
• Preparing business plan, around the idea
• Validate the model
• ‘Work on your business’
• Outsource non-strategic works
• Focus on indirect channels of marketing
• Automate to the maximum

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 Startup Phases
Discovery Efficiency
• Identify a potential scalable product / • The entrepreneur begins to define
service idea for a big enough target his/her business model and looks for
market ways to increase customer base
Validation Scale
• The service or product hits the market • Pushing the growth of the business
looking for its first clients ready to pay aggressively while increasing its
for it capacity to grow in a sustainable
manner
Maintenance
• Maximising benefits & facing problems and
challenges from the global dimension the
business has achieved
Scale or Renewal
• The decision to sell the startup to a giant or
acquire huge resources that the brand will
need to continue growing

Pre-Startup Startup Growth

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 Incubators
An incubator is an organization in a technology/management school or an
independent setup that helps earlystage startups launch their business and grow by
providing services such as workspace, management training, captive mentor pool,
access to technological services etc.
Accelerators
An accelerator is an organization, either an independent organization or a corporate
program that supports early-stage companies through intense immersive education,
mentorship, and financing. Startups enter accelerators for fixed time periods and
Startup graduate as established, robust companies which are ready to scale. Its objective is to
Ecosystem – accelerate the growth of the portfolio batch startups in a short period of time.
Mentors
Support Mentors (experienced individuals typically from the same industry) guide the less
experienced startups with best practices, management tools, industry connections,
Institutions etc.
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 • Networks can be physical (face-to-face) or virtual
• Networks help startups in -
• Improving business, clients and opportunities
• Gain referrals
• Finding mentors, investors and influential people
• Seeking partnership opportunities
• Gaining feeback on ideas, products and services
• Reaching out to top talent and expanding startup team
• Improved visibility
• Gain knowledge & skills
• How to network -
Startups & • Social media
• Business events
Networking • Friends, family & wellwishers
• Tips for good networking
• Be real, honest and gain confidence
• Be active & provide value to others who reach out to you
• Stay in touch
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 Small land holdings, rising
costs, declining returns
Inefficient Market, weak
Difficulties in assessing
bargaining power & low
inputs – quality & time
returns on investment
Problems of Indian
Agriculture

Climate Variability, poor risk

ग ाँव बढ़े तो दे श बढ़े
mitigation measures like
insurance, warehouse, etc.
www.nabard.org
Fragmented value chain, very
limited value addition
/nabardonline Taking Rural India >> Forward
 Agricultural Marketing …

Arhatiyas Trader Commission

Agent

Wholesaler
Consumer

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 Need for Agriculture Based Startups
ICT based
technology

Escape Velocity for

Agri Start-ups
Indian Agriculture

Incubation &
Funding
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 101 ICAR
Institutes, 71
SAUs & 680 Private
companies, UGC, CSIR, BARC,
KVKs
NGOs & Farmer IITs, IIMs, NRSA,
Bodies ISRO, etc.

Input Output

NABARD promoting
innovations in agriculture &
rural development
Existing Innovations Landscape in Agriculture
ग ाँव बढ़े तो दे श बढ़े
Technologies developed by
ICAR available in Technology
Repository. Open access policy
for viewing
 Fragmented Agri Innovations Landscape
Laboratories
• Research happening in silos
• Disconnect between research institutons & entrepreneurs.
Need to reach out
Incubators
• Lack of funds
• Lack of Skills to mentor startups
Investors
• Very few investors in agriculture / rural space
• Lack capacity to add value beyond capital
Startups
• Difficult to access seed capital
• Lack of mentors in agri startup space
• Access to markets tough
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Understanding of the agri sector/ value-chain in depth
• Aligning business model- as per constraints & aspirations of farmers &
consumers
• Conducting pilots- across different crop settings, climatic zones, harvesting
seasons
• Partnering with organizations - having experience of managing farmers
groups
Future Roadmap • Partnership with large corporates- for more efficient scale, network
• Incubating under Research Institutes- for technology support
for Agri Startup • CSR funds by corporates- to support pilots, technologies
• NABARD, SIDBI, BIRAC etc- to lead from the front, on start-up funding.
Ecosystem
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 Who will Choice of crop – Right
RightPrice
Price for
Right Pricethe
purchase Right Price
demand at time Produce
produce of harvest

Glut/price crash.
Can Right
the produce
Price
be stored /
processed

Farmer Concerns on Markets & Price

Realisation
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Ecozen’s cold store (Ecofrost) is a portable, solar powered of 5 MT
capacity. It is used for on-farm cooling & storage of perishable produce
after harvest or at distribution/ market place.
Startup
Response on
Markets & Price
Realisation

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Companies like AgShift, Agricx and Intello Labs are building machine-
Startup learning driven image processing algorithms, built upon billions of
data points spread across millions of images. The technology developed
Response on by these companies offers the convenience, portability and a wide range
of visual parameter inspection capabilities. However, not all the
Markets & Price parameters can be tested using these techniques. Some invasive methods
are still required for comprehensive testing.
Realisation

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 • Companies like Kleverkisan provide formidable logistics solutions for
marketing of farm produce

Startup
Response on
Markets & Price
Realisation

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Right &
Reliable
RightIrrigation
Price & Right Price
Optimum use of
Power ? inputs
Suitability of Sourcing of
Right
landPrice
for Availability of Right Price
Quality Inputs at
chosen crop Right Pricefor
guidance right price
cultivation

Farmer Concerns on
Production &
Productivity

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Farm ERP uses the power of Internet of Agricultural Things (IoAT), drones,
Artificial Intelligence (AI), Speech to Text, Blockchain, Statistical Modelling,
Predictive Farm Analysis, Machine Learning, etc., promote digital, sustainable
Startup agriculture and climate resilient agriculture adhereing to food safety and
traceability norms
Response on • FarmERP encompasses solutions and strategies for improvement of farm
production and productivity, procurement, processing, supply chain and
Production & financial data management, and analysis.
Productivity

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 • Chiraharit provides innovative pressurised solutions suitable for all sizes of
farms. The company provides drip irrigation, microjets, rain guns and center
pivots. For drip irrigation the company analyses information regarding land
Startup size, soil type, water type, crop type and other local parameters. The center
pivots reduce labour use by 75% and water use by 35% thereby resulting in
Response on higher profits for farmers.
Production &
Productivity

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Agrostar provides a one stop solution for quality inputs including fertilisers,
seeds, farm equipment, crop nutrition, etc., which are door delivered to
farmers, without help of middlemen, thus saving costs for farmers. Also
Startup farmers can sell excess inputs held by farmer through online marketplace
• AgroStar’s “Agri Doctor” provides farmers expert agronomy advice for their
Response on crop and farming needs through mobile app or call centre.
Production &
Productivity

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Addressing
Affordability
Right Price of
Right Price
market / price
capital risk
Availability of Risks relating to
Right Price
adequate Addressing weather / Rightacceptance
Price
product
capital natural
Right calamity
Price / at time of harvest
pest related risks

Farmer Concerns on
Risks & Capital

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Cropin works on the core principle of farm management to
improve efficiency and traceability of produce.

Startup
Response on
Production &
Productivity

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Jaikisan delivers customised, practical and sustainable financial products for
farmers through its B2B2C model, partnering with businesses – sellers of
inputs / equipment or buyers (offtakers / FPOs / processors) to improve
access to financial services for farmers.
Startup
Response on
Production &
Productivity

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Integrated Nutrient Management
& Integrated Pest Management
Drone Technology Pervasive Automation
Plug & play farm equipments
Agri input application & crop data for insurance

Agriculture Startups
– Areas Covered Vertical Farming
Hydrophonics / Aerophonics

Agri IOT
Farming automation/digitisation

Weather Tracking B2B/ B2C

Weather advisory services Marketing of agricultural & rural produce
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 An entity shall be considered as a Start-up if :
• It is incorporated as a Pvt. Ltd. company (as defined under Companies
Act, 2013) or registered as a Partnership (under Sec. 59 of Partnership
Act, 1932) or a Limited Liability Partnership (under the Limited
Liability Partnership Act, 2008) in India
• Up to 10 years from the date of its incorporation / registration
• If its turnover for any of the financial years since incorporation /
registration does not exceed Rs.100 crore
• If it is working towards innovation, development or improvement of
products or processes or services, or if it is a scaleable business model
DPIIT Definition with a high potential of employment generation or wealth creation
of Startup • Provided that any such entity formed by splitting up of reconstruction
of a business already in existence shall not be considered a “Startup”
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 Startup is -
If an enterprise aims to develop and commercialize
• a new product or service or process
• a significantly improved existing product or service or process,
that will create or add value for customers or workflow
Startup is not -
If an enterprise is developing or aiming to development -
• products or services or processes which do not have potential for
commercialization; or
• undifferentiated products or services or processes; or
• products or services or processes with no or limited incremental value
for customers or workflow

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 Labour Laws:
• The Building and Other Constructions Workers’ (Regulation of Employment &
Conditions of Service) Act, 1996
• The Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service)
Act, 1979
• The Payment of Gratuity Act, 1972
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
• The Employees’ State Insurance Act, 1948
Environment Laws:
• The Water (Prevention & Control of Pollution) Act, 1974
DPIIT • The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003
• The Air (Prevention & Control of Pollution) Act, 1981
Registration & • In the case of labour laws, no inspections will be conducted for a period of 5
Benefits – Self years, unless credible and verifiable complaint of violation
• In the case of environment laws, startups which fall under the ‘white category’ (as
Certification defined by the Central Pollution Control Board (CPCB)) would be able to self-
certify compliance and only random checks would be carried out in such cases
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 • Objective to reduce cost and time involved in acquiring patents and enable
innovators to protect their innovations. Benefits include -
• Fast tracking of startup patent applications so that their values can be realised sooner
DPIIT • Panel of facilitators to assist in filing of IP applications
• Government will bear entire facilitation cost irrespective of the number of applications
Registration & that a startup may chose to file
• 80% rebate on filing of patents
Benefits –
Patent Filing
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Objective to empower startups to grow faster
• Startups exempted from paying Income Tax for 3 consecutive years (of their
DPIIT choosing) of their first 10 years since incorporation
• Total turnover should not exceed Rs.100 crore
Registration & • Hence 100% of the profits and gains made from the business will be eligible for
Income Tax exemption
Benefits – Tax • Facility available only to Pvt. Ltd. Companies or LLPs
Exemption u/s • The startup should have been incorporated after 01 April 2016

80IAC
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 • Under Section 56(2)(viiB) of Income Tax Act, requires a company, not being a
company in which public is substantially interested, to issue shares at Fair Market
Value (FMV) (also called as Angel Tax)
• Any consideration beyond the FMV is subject to Income Tax to the extent it
exceeds the face value
DPIIT • Methods for assessing FMV is Book Value Method (NAV) or Discounted Cash Flow
Method or any method to the satisfaction of Assessing Officer
Registration & • Investments in eligible startups by listed companies, accredited
investors, Alternate Investment Funds (AIFs), with net worth of more than Rs.100
Benefits – Tax crore and turnover more than Rs.250 crore from provisions of Section 56(2)(viib) of
Income Tax Act
Exemption u/s • Consideration for shares received by eligible startups exempt upto an aggregate
56(2)(viib) value of Rs.25 crore
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Objective to allow entrepreneurs to experiment with innovative ideas and not
face complex winding up procedures
DPIIT • Also enables entrepreneurs to reallocate resources to more productive
• As per Insolvency & Bankruptcy Code, 2016 startups with simple debt structures
Registration & and those meeting certain income specified criteria can be wound up within 90
Benefits – Easy days

Exit
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Government and government organisations have large spending budgets
• Objective to make it easier for startups to improve their marketing portfolio and
participate in public procurement
• Startups can list products on Government e-Marketplace (GeM)
DPIIT • Exemption from prior experience / turnover for startups in manufacturing
Registration & sector without compromising on the quality standards of technical parameters.
• DPIIT registered startups exempt from submitting Earnest Money Deposit
Benefits – Public (EMD) or bid security for government tenders
Procurement
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 • Fund of Funds for Start-ups (FFS) with a corpus of Rs 10,000 crore for
contribution to various Alternative Investment Funds (AIFs) registered with
SEBI. Objective is to support funding needs for Start-ups through participation
in capital of SEBI registered Alternative Investment Funds.
• AIFs supported under FFS shall invest at least twice the contribution out of FFS,
in Startups

DPIIT
Registration &
Benefits – Fund
of Funds
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 • Startup India Seed Fund Scheme (SISFS) with outlay of Rs.945 crore
created by DPIIT
• Expected to support 3600 entrepreneurs and 300 incubators
• Elibilility
• Objective to support validation by promising startups for Proof of
Concept, prototype development, product validation, market entry, etc.
• Eligibility
• Technology driven startups not more than 2 years of existence, with atleast
51% Indian shareholding
• Startup should not have received more than Rs.10 lakh from state
Seed Fund government / GoI
• Incubators registered under Societies / Trust/ Companies Act with atleast 2
Scheme years of existence
• Incubator must have full time CEO and facilties to seat 25 startups and 5
startups on board
• Incubator should not be disbursing seed funds of third party to incubatees
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 The key objective of the exercise is to encourage States and Union Territories to
take proactive steps towards strengthening their startup ecosystems. The
methodology is aimed at creating healthy competition among States to further
learn, share and adopt good practices. The ‘States’ Startup Ranking Framework’
2020 is spread across 7 areas of intervention with a total of 26 Action Points.

States' Startup
Ranking

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Best Practices for Startups Across States
Highly interactive platform
www.startupgujarat.in & organizing Kerala State Startup Mission for
hackathons by Gujarat building a sustainable startup ecosystem
& online mechanism for seed funding
Catalyst for Women Entrepreneurship,
exclusive incubator space for women Government of Odisha has simplified
entrepreneurs in tech-enabled approvals & clearances under GO
enterprises by Karnataka SWIFT programme (single window
clearance)
Rajasthan Startup Fest where
startups, mentors & investors come ELEVATE platform of Government of
together Karnataka through grants for fostering
innovations by startups
“Hirkani Maharashtrachi” & “Fintech
Corpus Fund” to support seed funding Many states have set up new incubators
by Government of Maharashtra & upgraded existing incubators

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • In order to provide a boost to lending to startups, loans to startups are
included under Priority Sector by RBI upto Rs.50 crore in case of -
• Providing ancillary services to agriculture and allied industries as per
definition of Ministry of Industries & Commerce, GoI
• Definition of MSME as per Ministry of Industries & Commerce, GoI
• Loans to startups other than agriculture and allied or MSME as per
definition of Ministry of Industries & Commerce, GoI
•RBI has also set up Reserve Bank Innovation Hub to promote innnovation across
RBI & Startups financial sector. The hub will act as a centre for facilitating and fostering
innovation through ideation and incubation for deepening financial inclusion,
reaching efficient banking services, continuity in times of emergency,
strengthening customer proteciton, etc.

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • In order to provide a boost to lending to startups, loans to startups are
included under Priority Sector by RBI upto Rs.50 crore in case of -
• Providing ancillary services to agriculture and allied industries as per
definition of Ministry of Industries & Commerce, GoI
• Definition of MSME as per Ministry of Industries & Commerce, GoI
• Loans to startups other than agriculture and allied or MSME as per
definition of Ministry of Industries & Commerce, GoI
•RBI has also set up Reserve Bank Innovation Hub to promote innnovation across
NABARD & financial sector. The hub will act as a centre for facilitating and fostering
Startups innovation through ideation and incubation for deepening financial inclusion,
reaching efficient banking services, continuity in times of emergency,
strengthening customer protection, etc.

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Catalytic Capital Fund (CCF) to fund startups especially those in the Valley of
Death Stage
• Aid as a bridge between two stages, viz., deevelopment and commercialisation
of innovative technologies / products / services in agriculture
• Support upto Rs.10 crore per Incubation Centre and Rs.1 crore per incubatee
for both Incubation Centres supported by NABARD & Others
• Startups can be engaged in activities like irrigation, seeds, bio-pesticides, bio
fertilizers, precision farming, agro processing, marketing, biofuel, drinking
water, sanitation, rural based traditional and non-traditional activities,
Catalytic Capital energy, health, education etc. and any other field directly or indirectly
Assistance benefitting rural areas
• Activities supported include product development, go to market, testing &
trials, test marketing, mentoring & advisory, professional consultancy,
PR, manpower to day to day operations, etc.
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Eligibility criteria -
• Registered Incubation Centres funded by NABARD/GoI/State Govts in
operation for atleast 2 years and atleast 5 startups registered
• Indian startups in agriculture, allied or rural sectors registered with
DPIIT and atleast 3 months of incubation support with Incubation
Centre
• Startups should not have pending dues to government or be blacklisted
• Startup should not avail CCF from more than one Incubation Centre
supported by NABARD
• Each startup will receive CCF only once
Catalytic Capital • Startups will be provided assistance by way of soft loan, debt, equity or a
Assistance combination of these. Equity support is preferable
• Repayments in case of debt to be fixed realistically based on cash flow
• All unutilised funds including interest to be returned to NABARD in
case of closure of Incubation Centre
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Under Farm Sector Promotion Fund (FSPF) of NABARD assistance available
for agri-startups providing technology based solutions for farm sector in the
form of loan / grant
• Broad areas covered are -
• Promotion of innovations in agriculture & allied sectors
• Enhancing production and productivity of agriculture & allied sectors
• Promotion of climate resilient agriculture in vulnerable / distressed
districts
• Promotion of agriculture value chains
Farm Sector • Promotion of farmers collectives including training & capacity building
• Supporting expert advisory services including policy advocacy
Promotion Fund • Duration of project not more than 3 years, 1-2 more years in exceptional cases
• Items eligible include cost of equipment, administrative and recurring
costs, salary of core staff, miscellaneous expenses genuinely related to the
project
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Capital expenditure maximum 20% of project cost
• However in case of projects involving Artificial Intellilgence capital expenditure
maximum 40% of project cost
• Maximum quantum of assistance 95% of project cost
• Reports / research findings / results of studies not to be published without
consent of NABARD in writing
Farm Sector • In case projects lead to filing of patent or commercial exploitation, NABARD
will demand a share in the gains made thereunder
Promotion Fund

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • NABARD support for Rural Business Incubation Centres (RBIC) in institutions
associated with agriculture & rural development
• State Agriculture Universities /colleges, ICAR Institutes and IITs and IIMs;
• Private Universities;
• Academic / R&D Institutes;
• Technology /Industrial Parks
• Existing Incubators (Private and Public)
• Companies (for profit as well as not for profit company (section 8))
• CSR Foundations of Corporates and viii. Industry Associations et
Rural Business • RBICs will set up a Special Purpose Vehicle (SPV) as a "not for profit Section 8
Incubation company / for profit under Companies Act 2013 / Society / Trust" to provide
single window access
Centres • RBICs will provide incubation support to startups working in
agriculture, allied & off-farm activities
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Staff
• Exclusive CEO
• Business Development Manager
• FIeld Officer
• Customer Care Officer-cum-Computer Operator
• Lab Assistant
• Incubatees may comprise
• Farmers
• Rural youth / youth having implementable ideas
Rural Business • Agriculture / Horticulture students
Incubation • SHGs
• Producer Organisations
Centres • Companies / Corporates
• Any other individual / organisation working in / for rural areas
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Grant support of maximum Rs.15 crore
• Maximum period of assistance 5 years
• Incubator to be self-sustainable beyond 5 years
• Each incubator to have atleast 25 startups / year with total number of startups
touching 125 in 5 years
• Areas of operation – Broad areas relating to agriculture & rural development
Rural Business including organic food, livelihood, rural tourism, farm mechanisation, fisheries,
value addition, logistics, dairy & milk products, vertical farming, forest
Incubation products, waste management, clean energy, handicrafts, ICT including AI /
blockchain / IoT in agriculture / rural areas, etc.
Centres
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
Rural Business
Incubation
Centres
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
Rural Business
Incubation
Centres
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • The Hon’ble FM announced on 15.05.2020 AIF for farm-gate infrastructure
creation to address risks associated with production, storage & marketing
• Rs. 1 lakh crore as bank loan will be provided for funding Agri Infra Projects at
Farm-gate & Aggregation points
• Bank loans can be availed from any Scheduled Commercial Banks, SFBs, RRBs,
NCDC, NBFC, etc., which have signed MoU with NABARD / DAC&FW
• Agri-entrepreneurs and startups expected to –
• push for innovation in agriculture sector by leveraging new age technologies
including IoT, AI, etc.
Agriculture • It will also connect the players in ecosystem and hence, improve avenues for
collaboration between entrepreneurs and farmers
Infrastructure • Will ensure quality raw materials at assured price. Better planning and
Fund (AIF) improved efficiencies.
• Viable Agri Business and scope for improving Agri Exports
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 Interest Subvention
• 3% per annum up to a loan limit of Rs. 2 crore for a maximum period of 7 years.
• In case of loans beyond Rs.2 crore, then interest subvention will be limited up to 2
crore
Credit Guarantee
• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme
for a loan up to Rs. 2 crore.
• The fee for this coverage will be paid by the Government.
• In case of FPOs the credit guarantee may be availed from the facility created
Agriculture under FPO promotion scheme of DACFW.
Infrastructure Implementation Period
• Operational from 2020-21 to 2029-30.
Fund (AIF) • Interest subvention eligible for maximum 7 years

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Eligible Projects - Post Harvest Management Projects like -
• Supply chain services including e-marketing platforms
• Storage structures, Warehouses and Silos
• Pack houses
• Sorting, Grading and Assaying units
• Cold chains
• Logistics facilities
• Primary processing centers
• Ripening Chambers
Agriculture • Organic inputs production
Infrastructure • Bio stimulant production units
• Infrastructure for Smart and Precision agriculture.
Fund (AIF) • Projects identified for providing supply chain infrastructure for clusters of crops
including export clusters.
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 Participating Institutions
• Scheduled Commercial Banks and Small Finance Banks
• Scheduled Cooperative Banks
• Regional Rural Banks (RRBs),
• Non-Banking Financial Companies (NBFCs) and
• National Cooperative Development Corporation (NCDC)
• Signing of MoU with NABARD/DAC&FW is pre-requisite
• Need based refinance support will be made available by NABARD
Convergence
Agriculture • Any grant or subsidy available under any present or future scheme of
Central/State government can be availed.
Infrastructure • In cases of capital subsidy, such amount shall be considered as promoter’s
contribution.
Fund (AIF) • However, a minimum of 10% of the project cost shall be mandatory as promoter’s
contribution
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Food
• Food Processing
• Regional Food Brands
• Health And Welness Foods
• Food Logistics
• Supply Chain Monitoring Solutions
• Biotech In Food
• Rural
• Rural Healthcare & Rural Education
• Investment Strategy
• Startups/SMEs solving large problems
• Possesing technological edge (pre Series A & Series A rounds)
• Founding teams with high domain knowledge, business savvy & experience
• Asset light scalable models
• Innovative / Highly differentiated business models
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Nabventures is a 100% subsidiary of NABARD
• Provides venture capital by contributing to equity of startups
• Early to mid stage investments
• Focus areas -
• Agriculture
• Agtech
• Animal Husbandry
• Aquaculture
• Agri - Biotech
• Supply Chain Solutions
• Climate Resilient Agriculture
• Finance
• Financial Inclusion
• Rural / Agri Focussed NBFCs
• Rural / Agri Fintechs
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 Portfolio

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Startup Phases & Funding Options
Maturity – Bank
Funds, IPO
Investments
Growth – VC Rounds
Profit

Launch (early stage)

– Crowd funds, angel
funds, VC Rounds
Explore (Concept) – Lean Build (seed / startup)
Cost Management, self- – Crowd funds, angel
funding, bootstrapping funds, Seed VCs
Validate (pre-seed) –
self-funding,
bootstrapping,
friends, family, govt
grants

TIme
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 Bootstrapping
Bootstrapping involves avoidance or debt or equity or other outside support. Hence,
the startup founders will resort to personal funding or cash from sales. Bootstrapping
can inhibit growth and undermine quality or product or service. Bootstrapping can
mean no pressure from investors.
Angel Investors
Angel investors are early stage or seed investors who typically invest small sums of
money as the assumed risk is very high. They are usually affluent or high net worth
Startup individuals
Venture Capitalists / Private Equity
Ecosystem – Venture Capitalists typically invest in growth or late stages of a startup’s life cycle.
These are firms / professional investors. Hence, in addition to funding, they also
Funds provide access to legal, accounting, networking, etc., support. Hence they enrich the
overall value of a start-up they are associated with.
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 Startup Funding - Stages
Pre-Seed
Working on Idea/ Prototype.
Fund Sources – Friends, family, grants, B-plan
competitions, collateral free debt

Series A
Seed Product / Service gaining market traction
Fund Sources - Venture funds, bank loan
Product / service launched in market
Fund sources – Angel investors, pitching
competitions, collateral free loans

Series B, C IPO / Exit

New customers, rapidly increasing revenues Established customer base & stable revenues
Fund Sources – Private equity firms, investment Fund Sources – Stock markets, acquisition by
Firms, venture capitalists, etc. large corporations

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Seed capital is the first investment for starting the enterprise
• Seed capital is made available from
• Own Sources
• Or FFF – Friends, Family & Fools
• Fools are those willing to trust you and risk putting money in your business
• Here investors normally understand the risk
• High growth prospects expected
• Flexible business agreements
• Depends on own networking and standing within community
• Risks associated are
• Investments are high risk
Seed Capital • Giving up equity / stake at low price
• Can lead to diversions
• For entrepreneurs, could lead to interference from investors and loss of
control
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 • Angels are people outside of FFF network
• Angels are generally early stage investors using personal resources
• They generally see the business through tough times
• It is estimated that angels put in about 15x the total number of startups as
compared to Venture Capitalists
• Companies with angel investments generally have a better chance of success
• Angels are persons who have the resources as well as willingness to take risk
• Generally investments are made in form of equity and sometimes as debt
• Usually do not take part in day-to-day management but contribute by way of
mentorship
Angel Funds • Benefits include quick decisions, not very strict funding criterion
• Risks associated include giving away equity / stake at low cost. Also amounts
invested will generally be lower than Venture Capitalists

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Venture Capitalists enter funding when products have already been launched and
assistance is required for scaling up
• Venture capitalists generally invest in anticipation of massive return on capital
• There are multiple rounds of VC financing, generally A, B, C…
• Each round A/B/C… refers to different valuations of the company
• Venture capitalists may be High Net Worth Individuals or professionally managed
firms
• In addition to finance they also provide business support through networking,
product development, sales & marketing, etc.
• Will impose strict financing conditions
• Forms of capital include equity, conditional loans, preference shares, etc.
• VCs have capacity to invest large sums of money
• VCs generally take long time to take investment decisions

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 • Mezzanine financing is a hybrid between debt and equity
• It is done when the company has progressed and considered
profitable
• One of the reasons could be that before IPO opportunity, a
company might require more funds for acquisitions or
management buy out
• These funds are usually used for 6-12 months and paid back from
the proceeds of the IPO

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Initial Public Offering (IPO)
IPO is offering of shares of
private corporation to IPOs need to meet
public in primary market requirements set by SEBI

Used by companies
which have matured and IPO can also be an exit
BUY SELL
can raise money by strategy for founders
selling stocks to public. and early investors

Companies take help of After an IPO, the company’s

investment banks who stocks are traded on stock
help in fixing price, size, exchange like BSE, NSE, etc.
date, etc.
ग ाँव बढ़े तो दे श बढ़े www.free-powerpoint-templates-design.com Taking Rural India >> Forward
 Startups & Valley of Death
• Startup has begun operations but not generating
revenue
• There is a cash flow burn depleting initial capital
invested creating liquidity crisis
• Since business model is not proven, it is difficult for
startups to raise money
• Valley of death is challenging as numerous initial costs
like rents, staff, R&D, marketing, etc., are involved,
many of which are front ended
• The longer the valley of death curve the more likely a
startup will fail prematurely
• The shape of the valley of death curve varies on a case-
by-case basis depending on industry, seed money
invested, liquidity management, etc.
ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward
 Accumulate adequate resources
01 01
before you start
02
02 Manage liquidity efficiently. Keep a tab
on expenditures
Avoiding 03
Join startup incubators, seek government
grants, contests, etc.
Valley of Pre-sell products / services, joint venture
04
04 with distributor / beneficiary. Commit to
Death a major customer
05 Apply for loan, tap friends & family, avail
crowd funding

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Six Principles of Jugaad
• Seek Opportunity in Adversity
• Do More with Less
• Think & Act Flexibly
• Keep it Simple
• Inclue the Margin
• Follow Your Heart

“Collectively, these 6 principles of jugaad help drive resilience, frugality, adaptability,

simplicity, inclusivity, empathy and passion, all of which are essential to compete and win
in a complex world. Adopting these principes could help firms – anywhere in the world –
innovate and grow in a highly volatile, hypercompetitive envrionment

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 Inspiration is perishable
We all have ideas. Ideas are immortal. They last forever. What doesn't last forever is
inspiration. Inspiration is like fresh fruit or milk: It has an expiration date. If you want
to do something, you've got to do it now. You can't put it on a shelf and wait two
months to get around to it. You can't just say you'll do it later. Later, you won't be
pumped up about it anymore. If you're inspired on a Friday, swear off the weekend
and dive into the project. When you're high on inspiration, you can get two weeks of
work done in twenty-four hours. Inspiration is a time machine in that way. Inspiration
is a magical thing, a productivity multiplier, a motivator. But it won't wait for you.
Inspiration is a now thing. If it grabs you, grab it right back and put it to work.

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 The Original Jugaad

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 … and then….

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 … and ….

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 … and ….

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 … and ….

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 … and ….

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

 … and ….

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward

Vectors Courtesy

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 Thank You

ग ाँव बढ़े तो दे श बढ़े Taking Rural India >> Forward