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Murthy’s Catamaran Ventures Pulls Back From Startups, Shifts to Manufacturing Bets

Steep secondary discounts together with limited control are pushing the $1.3 billion family office toward scalable supply‑chain SMEs.

Overview

  • Catamaran has completed only two startup investments since early 2024, saying prices for high‑growth, profitable firms remain too rich.
  • President Deepak Padaki says middling companies without clear profitability are changing hands at 30–40% discounts as funds near term end dates.
  • The firm is avoiding minority‑stake deals that limit influence and is steering clear of turnaround situations that require intensive hand‑holding.
  • New targets include manufacturers in aerospace, electric vehicles, electronics and possibly medical devices, with an emphasis on SMEs seeking to scale from one or two plants.
  • The pivot comes as India’s dealmaking cooled from a $38.5 billion peak in 2021 to a partial 2024 rebound at $13.7 billion, and as Catamaran underscores a narrow manufacturing window before automation erodes cost advantages.