Fund News
Sparrow Capital closes third fund at Rs.475-Cr
Bengaluru-based Sparrow Capital has raised INR 475 crore for its third fund. 60% of the capital was contributed by global endowments, foundations, funds of funds, and family offices, while the remainder came from startup founders, operators, Indian family offices, and high net worth individuals. The firm reached an initial close of INR 122 Cr in August 2025 and reached INR 280 Cr by April 2026.Founded in 2020 by Yash Jain, Aakash Goyal and Darshit Vora, the firm focuses on early-stage investments. The company plans to deploy the new capital to invest USD 1-2 million each in 25 to 30 companies over the next three years. It intends to use 30% to 40% of the fund for follow-on investments in its portfolio companies.With this larger corpus, the firm aims to transition from participating or co-leading rounds to leading or co-leading seed-stage investments. The leadership team has expanded for the third fund with the addition of Arpit Agrawal (ex KreditBee and PwC) who joins as CFO and partner.
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