Account
Sparrow Capital is a Bengaluru-based early-stage venture firm founded in 2020 by Yash Jain. The firm backs seed-stage founders building in consumer, fintech, B2B software, deep tech, and AI-native software, primarily from India for global markets. In six years, Sparrow has backed more than 40 companies across its three funds, growing from a largely domestic LP base to a predominantly institutional one.
Sparrow backs seed-stage Indian startups across consumer, fintech, enterprise software, AI-native software, B2B/manufacturing, and deep tech.
Fund III reflects an upgraded investment mandate, larger checks into fewer, higher-conviction companies, with particular focus on consumer, fintech, and AI-native software founders building from India for global markets. The firm reserves 30–40% of each fund for follow-on investments.
Sparrow Capital Fund III reached final close at $55M in June 2026, up from a first close of $14M (Rs 122 crore) in August 2025 and an interim close of $32M (Rs 280 crore) in April 2026.
60% of the corpus came from global investors, endowments, foundations, funds of funds, and family offices, marking a significant shift from Sparrow's earlier largely domestic and non-institutional LP base.
The remaining 40% came from startup founders, operators, Indian family offices, and high net worth individuals. Fund III is significantly larger than Fund II ($14M / Rs 120 crore), which backed 27 companies with $300K–$500K checks.
The fund plans to back 25–30 startups over three years with initial checks of $1–2M, with five investments already made.
Leadership
Yash Jain is Founder and General Partner.
Aakash Goyal is General Partner.
Darshit Vora is General Partner.
Arpit Agarwal joined as CFO and Partner for Fund III, bringing prior experience from KreditBee and PwC.
Investment Strategy
Sparrow writes $1–2M initial checks at seed stage, targeting 25–30 companies per fund over three years, with 30–40% of capital reserved for follow-on.
The firm has deliberately increased check size and reduced portfolio volume compared to prior funds, positioning itself to lead or co-lead early rounds as the Indian seed market shifts toward larger average check sizes.
Post-investment support is hands-on, with a patient, long-term partnership model designed for founders building over decade-long time horizons.
Notable Investments
Notable Exits
Yash Jain — Founder & General Partner
Aakash Goyal — General Partner
aakash@sparrowvc.com
Darshit Vora — General Partner
Arpit Agarwal — CFO & Partner
arpit@sparrowvc.com
India
