Startups no longer thrill Narayana Murthy’s fund: Here’s what it’s betting on now
India’s startup ecosystem saw a peak in 2021 with $38.5 billion in venture and growth deals, but enthusiasm has tapered.
- Aug 26, 2025,
- Updated Aug 26, 2025 8:01 AM IST
Catamaran Ventures LLP, the family office of Infosys founder Narayana Murthy, is pulling back from India’s startup market, citing steep discounts on struggling companies and weak exit options, according to a Bloomberg interview with President Deepak Padaki.
“There may be opportunities for private equity or secondary funds but we do not have the bandwidth to take on companies that need extensive hand-holding for a turnaround,” Padaki told Bloomberg.
He said middling startups without clear profitability or growth are trading at 30–40% discounts as funds near the end of their cycles and rush to exit. Catamaran, managing $1.3 billion for Murthy has reportedly invested in only two companies in 2024, arguing that even promising startups are overvalued.
Deals offering only minority stakes without strategic control are no longer compelling, Padaki noted. Business Today could not independently verify the report.
India’s startup ecosystem saw a peak in 2021 with $38.5 billion in venture and growth deals, but enthusiasm has tapered. Still, 2024 has seen some recovery, with deal activity hitting $13.7 billion, Bloomberg reported, citing Bain & Co.
Catamaran is now shifting focus toward manufacturing—especially in aerospace, EVs, electronics, and potentially medical devices—as India attempts to grow its exports and reduce supply chain reliance.
It is eyeing SMEs with one or two factories and ambitions to scale. “As a family office with the potential to deploy more patient capital, manufacturing fits aptly with what we want to do,” Padaki said, adding that India has a narrow window before global automation erodes its cost advantage.
The firm’s broader portfolio includes public market holdings, the National Stock Exchange of India Ltd, and U.S.-based SpaceX.
Catamaran Ventures LLP, the family office of Infosys founder Narayana Murthy, is pulling back from India’s startup market, citing steep discounts on struggling companies and weak exit options, according to a Bloomberg interview with President Deepak Padaki.
“There may be opportunities for private equity or secondary funds but we do not have the bandwidth to take on companies that need extensive hand-holding for a turnaround,” Padaki told Bloomberg.
He said middling startups without clear profitability or growth are trading at 30–40% discounts as funds near the end of their cycles and rush to exit. Catamaran, managing $1.3 billion for Murthy has reportedly invested in only two companies in 2024, arguing that even promising startups are overvalued.
Deals offering only minority stakes without strategic control are no longer compelling, Padaki noted. Business Today could not independently verify the report.
India’s startup ecosystem saw a peak in 2021 with $38.5 billion in venture and growth deals, but enthusiasm has tapered. Still, 2024 has seen some recovery, with deal activity hitting $13.7 billion, Bloomberg reported, citing Bain & Co.
Catamaran is now shifting focus toward manufacturing—especially in aerospace, EVs, electronics, and potentially medical devices—as India attempts to grow its exports and reduce supply chain reliance.
It is eyeing SMEs with one or two factories and ambitions to scale. “As a family office with the potential to deploy more patient capital, manufacturing fits aptly with what we want to do,” Padaki said, adding that India has a narrow window before global automation erodes its cost advantage.
The firm’s broader portfolio includes public market holdings, the National Stock Exchange of India Ltd, and U.S.-based SpaceX.