Newsletter
Early-stage venture capital firm Sparrow Capital has raised ₹475 crore for its third fund, giving it a much bigger war chest to invest in India's next generation of startups.
The deets: Sparrow plans to invest in 25-30 seed-stage startups over the next three years.
It will also write much larger first cheques of $1-2 million, up from $300,000-$500,000 earlier, giving founders more capital right from the start.
Why now: the timing is interesting. After nearly two years of slow funding activity, India's early-stage startup ecosystem is beginning to regain momentum.
Raising money is still tough, thanks to a weaker rupee and cautious global investors. But VC firms with a strong track record, like Sparrow, are still managing to attract capital, especially from large overseas institutional investors.
