# Sparrow Capital announces Rs 475 Cr third fund — retained record

> Retained news record from news:india-entrackr.

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source: [news](https://highsignal.app/data/news) (news:india-entrackr)  published 2026-07-02 04:05 ingested 2026-07-02 08:55

[original source ↗](https://entrackr.com/snippets/sparrow-capital-announces-rs-475-cr-third-fund-12125524)

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Early-stage, sector-agnostic venture capital firm Sparrow Capital has announced the final close of its third fund at Rs 475 crore. The firm plans to back 25 to 30 startups over the next three years with initial cheque sizes of $1 million to $2 million, and has already made five investments.
Around 60% of the corpus has come from global endowments, foundations, funds of funds, and family offices, while the remaining capital has been raised from startup founders, operators, Indian family offices, and high net worth individuals (HNIs). According to the firm, this marks a shift in its limited partner base, which was largely non-institutional in its earlier funds.
The new vehicle is substantially larger than Sparrow’s Rs 120 crore Fund II, which backed 27 startups with cheque sizes of $300,000 to $500,000. The larger corpus will also allow the firm to lead or co-lead more seed-stage rounds.
Sparrow 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 later increased to around Rs 280 crore by April 2026 before the final close.
The firm will continue to invest across sectors, with consumer, fintech, and AI native software among the areas where it is seeing strong founder activity. It plans to reserve 30% to 40% of the fund for follow-on investments.
Since inception, Sparrow Capital has invested in more than 40 startups. Its portfolio includes Gokwik, Apnamart, Deconstruct, E6data, Gushwork, Furnishka, Aukera, StrainX, Superhealth, Homerun, and Optimist. The firm said companies from its first fund, including Gokwik, Apnamart, and Deconstruct, have matured and could provide liquidity opportunities over the next two to three years.
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