New Delhi, July 2 -- Bengaluru-based Sparrow Capital, which makes sector-agnostic bets in early-stage startups, has closed its third fund, collecting Rs 475 crore (nearly $50 million) for the vehicle.
The fund raised about 60% of the capital from global endowments, foundations, funds of funds and family offices, it said in a LinkedIn post.
The remainder of the capital came from prominent start-up founders and operators, Indian family offices and high net worth individuals in India.
This third vehicle, which had marked its first close in August 2025 with Rs 122 crore, plans to build a portfolio of about 25-30 startups as it deploys capital over the next three years. Its initial cheques will range from $1 million-$2 million (around Rs 9.5-19 crore), a significant rise from the previous fund. The fund, which will focus on backing seed-stage companies, has invested in five companies.
It will reserve 30-40% of the corpus for follow-on investments, broadly in line with Sparrow Capital's previous fund, which had set aside about 35% for follow-ons.
Sparrow Capital, a seed stage investor, was set up in 2020 by Yash Jain, Aaskash Goyal, and Darshit Vora. It collected Rs 4 crore for its first fund, and deployed Rs 150 crore through its second vehicle.
Across the two funds, it has invested in about 40 companies. It has also clocked at least two exits including from no-code email marketing software mailmodo, according to its website.
Its portfolio includes names such as consumer brand Deconstruct, D2C eCommerce Growth Platform GoKwik, cloud storage management provider Lucidity, and business-focussed manufacturing Growth Platform Groyyo among others, according to its website.
Published by HT Digital Content Services with permission from VC Circle.