Narayana Murthy's Family Office Bets on Factories Amid Startup Valuation Crash
- Catamaran Ventures warns of steep discounts on Indian startups struggling with growth.
- The family office is focusing on manufacturing, including aerospace, EVs, electronics, and medical devices.
- Catamaran prefers high-growth, profitable companies and avoids minority stakes needing heavy turnaround support.
Infosys Co-founder NR Narayana Murthy’s family office, Catamaran Ventures, has raised concerns about the steep discounts in India’s startup market and is now turning its attention toward manufacturing investments.
Speaking to Bloomberg, Deepak Padaki, president of Catamaran Ventures LLP, said that many mid-level startups without a clear path to profitability are being sold at heavy discounts of 30-40 percent. He explained that several investment funds are nearing the end of their terms and are looking to exit, which is driving down valuations.
Padaki noted that while there may be opportunities for private equity or secondary funds to step in, Catamaran is not looking to take on companies that require heavy turnaround support. Instead, the family office is being highly selective. “We do not have the bandwidth to take on companies that need extensive hand-holding”, he said.
Catamaran manages Narayana Murthy’s $1.3 billion portfolio and is among the largest private investors in the country. While India continues to be one of the biggest startup ecosystems in the world, valuations of many firms have dropped sharply as growth slowed and investor scrutiny increased.
The report highlighted Oyo Hotels as a case in point. Backed by SoftBank, Oyo was once valued at $10 billion in 2019 but has since struggled due to tough competition, weaker earnings, and repeated delays in its stock market debut.
During the pandemic years, India saw a surge in venture capital and growth deals, peaking at $38.5 billion in 2021, according to Bain & Co. But by 2024, that figure had fallen to $13.7 billion. Catamaran has remained cautious in this environment, making only two investments so far this year. Padaki added that the firm also finds minority stake deals less attractive since they do not provide enough control.
Looking ahead, Catamaran Ventures is shifting focus to manufacturing, in line with India’s push to strengthen local production and exports. The family office already has investments in public markets and a handful of tech startups, including stakes in SpaceX and the National Stock Exchange of India Ltd.
Padaki said Catamaran is now scouting for small and medium enterprises (SMEs) with one or two factories that want to expand. The firm is particularly interested in sectors like aerospace, electric vehicles, electronics, and potentially medical devices in the future.
“India has a short window to take advantage of the global interest in manufacturing”, he said, adding that the country’s cost advantage could shrink as automation becomes widespread. “As a family office with patient capital, manufacturing fits well with what we want to do”.
