Akshata Murty, the wife of UK Prime Minister Rishi Sunak, has announced the winding down of her venture capital fund, Catamaran Ventures UK. The decision comes in the wake of mounting questions surrounding the fund’s connection to taxpayer-funded initiatives.
Liquidation decision revealed in filings
Recent filings at Companies House show that Catamaran Ventures UK’s directors “have decided to liquidate the company.” This move raises further questions about Murty’s investments made through the fund, which include a 0.91% stake in her father’s Indian IT giant, Infosys, estimated this year to be worth £590m.
Public funds and startup controversies
Catamaran Ventures UK’s operations have faced scrutiny due to its involvement with startups that received financial support from taxpayer-backed schemes, as well as debts owed to HM Revenue and Customs.
One such startup was New Craftsmen, the upmarket furniture, firm collapsed into liquidation after receiving £300,000 in taxpayer-funded loans, policies put in place while Rishi Sunak was chancellor.
Another, Mrs Wordsmith was an education company that secured £1.3 million from the Future Fund, designed by Sunak to aid small startups during the pandemic. Mrs Wordsmith later folded, owing £249,000 to HMRC.
Despite receiving Covid furlough payments of up to £630,000, fitness chain, Digme Fitness, is another startup that, in 2021, went into administration with more than £6.1 million in VAT and PAYE taxes owed.
Study Hall is an education technology business backed by Catamaran, which received a government grant of £349,976 from Innovate UK in 2022 and continues to operate.
Ongoing controversies
Akshata Murty’s financial arrangements have remained a point of contention during her husband’s tenure in Downing Street. This includes her “non-dom” tax status, which allowed her to minimize taxes on dividends from Infosys which were worth £11.5m in the 2022-2023 financial year. After public criticism, she agreed to pay tax in the UK on her worldwide income.
Furthermore, her stake in childcare company Koru Kids raised concerns when it was revealed that Prime Minister Rishi Sunak had failed to declare it while being questioned by MPs. While Koru Kids was poised to benefit from a pilot scheme to incentivize more people to become childminders, the breach was deemed inadvertent by parliament’s standards commissioner.
As the Catamaran Ventures UK fund begins its liquidation process, questions surrounding its investments and their connection to public funds continue to loom.
