Suzuki-backed Next Bharat Ventures announces Rs 2,000 cr impact fund

Japan’s Suzuki Motor Corporation-backed Next Bharat Ventures IFSC Pvt Ltd on Monday announced the launch of its second fund of Rs 2,000 crore, aimed to support startups across sectors, including agriculture, financial inclusion, healthcare and AI for social good in India.

Earlier, through its first Rs 340 crore fund, Next Bharat Ventures (NBV) invested in over 20 ‘impact organisations’. The second fund will mostly come from Suzuki Motor Corporation as the anchor LP but there will be other money which will also be raised from other corporations from Japan, Next Bharat Ventures Founder and CEO Vipul Jindal Nath told PTI.

Asked what in areas the fund will be deployed, he said, “The sectors which we invest in are basically any sector where a startup can help (improve) the quality of life for the local communities of rural India, tier two-three towns, or even in big cities (those of) informal and gig economy workers.”

It automatically becomes like agriculture, agritech, healthcare, health-tech and livelihood, Nath added.

On the timeline for the deployment of the fund, he said, “We will be deploying the `2,000 crore in the next three to four years.”

On the reason for raising almost the entire corpus from Japan, Nath said, “Because we believe Japanese institutions are much more patient in terms of investment.”

Unlike a typical VC fund, he said,” Our fund cycle is not 12 years, it is 15 years because the kind of investment we make in the sector, the impact, they need a little bit more (time). The speed is not an exponential growth or hyper growth curve, (it needs) more time, more patience, and we want to give that to them.”

This second corpus will enable Next Bharat Ventures to significantly expand its support towards “impact entrepreneurs” building to improve quality of life and sustainable livelihoods across rural India and migrated and urban marginalised communities, the company said.

Commenting on the new fund, Suzuki Motor Corporation Representative Director & President Toshihiro Suzuki said, “Japan’s investment in India has always been rooted in a shared belief in India’s potential, and nowhere is that more evident than in our four-decade partnership.”

The most important legacy is not the cars themselves, but the enterprises born from it - ordinary shops that became major dealerships, repair workshops that became auto-parts suppliers, and a single supplier that gave rise to entire SME ecosystems, he added.

“In this way, we created an estimated 3,000-plus entrepreneurs across India, each a homegrown engine of local jobs and income. With Fund II, we are deepening this commitment, and we are honoured to walk this path with the Government of India toward a truly Atmanirbhar Bharat,” Suzuki said.

NBV said the fresh Rs 2,000 crore second fund substantially expands its investment capacity.

Over the years, it has invested in several rural startups, including MeMeraki, an authentic Indian folk-art marketplace; E-Bik, a rural mobility brand that provides affordable e-mobility kits for cycles and rickshaws; SGB Agro, a brand that offers affordable mechanisation for small-holding farmers and Atypical Advantage, India’s largest PwD livelihood platform, among others.