Startups selling at discounts of 30-40%, says Family Office to Infosys co-founder Narayana Murthy; warns on startup valuations

In an assessment of the Indian startup ecosystem, Catamaran Ventures LLP, the family office of Infosys co-founder Narayana Murthy, has raised concerns over the inflated startup valuations and also revealed that many startups are still being sold at 30 to 40% discount. Catamaran president, Deepak Padaki told Bloomberg that many startups lack clear paths to profitability and are being offloaded by funds which leads to end of their investment cycles. “Funds that invested in these companies want to sell their investments because they are reaching the end of their fund terms,” Padaki said, adding that Catamaran is steering clear of turnaround-heavy deals.