The family office of tech billionaire Narayana Murthy, Catamaran Ventures, is taking a more cautious approach toward Indian startups, citing steep markdowns as funds rush to exit investments nearing the end of their life cycles. Deepak Padaki, president of Catamaran, noted that underperforming startups with limited growth or unclear paths to profitability are being sold at discounts of 30–40%.
Padaki said Catamaran lacks the resources to turn around such ventures and is not interested in highly distressed opportunities. While India’s startup ecosystem remains vibrant, with funding rebounding to $13.7 billion in 2024 after peaking at $38.5 billion in 2021, Catamaran has made just two investments this year, believing valuations for quality startups remain too high. The firm has also become less inclined to buy minority stakes where it lacks control.
Instead, Catamaran is pivoting toward manufacturing and public markets. It now focuses on sectors like aerospace, electric vehicles, electronics, and potentially medical devices. The firm seeks scalable small and mid-sized businesses, particularly as India pushes to boost domestic manufacturing. Padaki believes India has a short window to leverage its cost advantage before automation narrows the gap.
