<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0708</schemaVersion>

    <submissionType>D/A</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0002149989</cik>
        <entityName>Sparrow Capital III Trust</entityName>
        <issuerAddress>
            <street1>2ND FLOOR UNITUS BUILDING 2150</street1>
            <street2>17TH MAIN RD HAL 2ND STAGE, INDIRANAGAR</street2>
            <city>BANGLORE</city>
            <stateOrCountry>K7</stateOrCountry>
            <stateOrCountryDescription>INDIA</stateOrCountryDescription>
            <zipCode>560008</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>9190049 53270</issuerPhoneNumber>
        <jurisdictionOfInc>INDIA</jurisdictionOfInc>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <edgarPreviousNameList>
            <value>None</value>
        </edgarPreviousNameList>
        <entityType>Other</entityType>
        <entityTypeOtherDesc>Trust</entityTypeOtherDesc>
        <yearOfInc>
            <withinFiveYears>true</withinFiveYears>
            <value>2024</value>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>N/A</firstName>
                <lastName>MITCON Credentia Trusteeship Services Limited</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>1st Floor, Kubera Chambers</street1>
                <street2>Shivajinagar</street2>
                <city>Pune</city>
                <stateOrCountry>K7</stateOrCountry>
                <stateOrCountryDescription>INDIA</stateOrCountryDescription>
                <zipCode>411005</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Related persons are Trustee/Director of the Issuer</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>N/A</firstName>
                <lastName>Sparrow Sponsor 2024 LLP</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>2nd Floor, Unitus Building</street1>
                <street2>Indiranagar</street2>
                <city>Banglore</city>
                <stateOrCountry>K7</stateOrCountry>
                <stateOrCountryDescription>INDIA</stateOrCountryDescription>
                <zipCode>560008</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Promoter</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Sponsor/Promoter of the Issuer.
Partners in the Sponsor Entity: Yash Jain, Arpit Agrawal, Aakash Goyal, Darshit Vora</relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>N/A</firstName>
                <lastName>Sparrow Capital Management 2024 LLP</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>2nd Floor, Unitus Building</street1>
                <street2>Indiranagar</street2>
                <city>Banglore</city>
                <stateOrCountry>K7</stateOrCountry>
                <stateOrCountryDescription>INDIA</stateOrCountryDescription>
                <zipCode>560008</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification>Executive Officer/Investment Manager of the Issuer
Partners in the Investment Manager: Yash Jain, Aakash Goyal, Darshit Vora</relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Pooled Investment Fund</industryGroupType>
            <investmentFundInfo>
                <investmentFundType>Venture Capital Fund</investmentFundType>
                <is40Act>false</is40Act>
            </investmentFundInfo>
        </industryGroup>
        <issuerSize>
            <revenueRange>$25,000,001 - $100,000,000</revenueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06b</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>true</isAmendment>
                <previousAccessionNumber>0002149030-26-000001</previousAccessionNumber>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2025-03-20</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>false</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isPooledInvestmentFundType>true</isPooledInvestmentFundType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
            <clarificationOfResponse></clarificationOfResponse>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>104800</minimumInvestmentAccepted>
        <salesCompensationList></salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>50203535</totalOfferingAmount>
            <totalAmountSold>49713837</totalAmountSold>
            <totalRemaining>489698</totalRemaining>
            <clarificationOfResponse>The offerings were made in INR, total offering amount was INR 4,800,000,000 and the total amount sold was INR 4,752,800,000. And the above populated fields represent the dollar amount based on the conversion rate on the date of filing.</clarificationOfResponse>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>false</hasNonAccreditedInvestors>
            <totalNumberAlreadyInvested>84</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>0</dollarAmount>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse></clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>7720000</dollarAmount>
                <isEstimate>true</isEstimate>
            </grossProceedsUsed>
            <clarificationOfResponse></clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>Sparrow Capital III Trust</issuerName>
                <signatureName>Arpit Agrawal</signatureName>
                <nameOfSigner>Arpit Agrawal</nameOfSigner>
                <signatureTitle>CFO</signatureTitle>
                <signatureDate>2026-08-18</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
