Sparrow Capital Closes Rs 475 Cr Third Fund To Back 25–30 Early-stage Startups
BW Online BureauJul 02, 2026
Sparrow Capital will continue investing across sectors, with consumer, fintech, and AI-native software emerging as key areas of founder activity
Sparrow Capital marks the final close of its third venture capital fund at Rs 475 crore, marking a significant increase from its previous Rs 120 crore Fund II, according to media reports. The early-stage, sector-agnostic investment firm plans to invest in 25 to 30 startups over the next three years and has already deployed capital into five companies.
Under the new fund, Sparrow Capital will write initial cheques of USD 1 million to USD 2 million, enabling it to lead or co-lead more seed-stage funding rounds. The firm also plans to reserve 30 per cent to 40 per cent of the corpus for follow-on investments, as per media reports.
The firm had announced the first close of the fund at Rs 122 crore in August 2025 with participation from existing limited partners and startup ecosystem participants. The corpus subsequently grew to around Rs 280 crore by April 2026 before reaching its final close of Rs 475 crore.
According to media reports, Sparrow Capital said it will continue investing across sectors, with consumer, fintech, and AI-native software emerging as key areas of founder activity.
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