[EXCLUSIVE] General Catalyst set to invest $10M in Primus Life’s $25M fundraise

General Catalyst India is in talks with Primus Life to invest approximately $10 million in the senior living platform, as venture capital firms pivot beyond tech for better returns amid a market slowdown.

Primus Life, which is looking to raise up to $25 million in a funding round, has also initiated discussions with other private investors, three people with direct knowledge of the matter told YourStory.

General Catalyst India and Primus Life did not respond to YourStory’s request for comments.

The investment will be one of the first deals for General Catalyst India, formerly Venture Highway, which was acquired by Silicon Valley-based General Catalyst in June to expand its presence in the country.

The investment will be through the new Indian entity, General Catalyst India, which is a part of General Catalyst’s global fund.

General Catalyst India plans to deploy between $500 million and $1 billion in the country. Last month, the VC firm co-led Mukesh Bansal’s Nurix AI’s $27.5 million seed-Series A funding round with Accel. 

General Catalyst‘s investment in Primus Life marks a subtle departure from its traditionally tech-focused portfolio—which includes companies such as Canva, HubSpot, and Airbnb in the US and Cred, Uni and Spinny in India—prior to its acquisition of Venture Highway.

Venture Highway too has traditionally backed internet companies such as Moglix and Meesho. However, the current move aligns with the broader trend among Indian VC firms, as tech investments have slowed over the past 18 months.

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The proposed investment also marks General Catalyst India's second growth venture capital deal.

In media interviews following the acquisition of Venture Highway, Hemant Taneja, CEO and Managing Director of General Catalyst, mentioned that the firm would pursue both growth-stage and early-stage investments in India.

The investment in Primus also marks a slight shift for Venture Highway, which has traditionally focused on supporting early-stage ventures.

Primus Life owns a chain of senior living communities equipped with personalised care and wellness amenities for senior citizens. It entered the Mumbai market in March last year and is in the process of delivering over 2,000 senior homes.

The startup is all set to open its services in Hyderabad and Kolkata, according to its website. 

According to Tracxn, Primus Life reported a revenue of Rs 66.8 crore in FY23 compared to Rs 25.3 crore in FY22. During the same period, the company swung to a net profit of Rs 24.1 crore from a loss of Rs 4.9 crore in FY22. 

General Catalyst India's proposed investment in Primus Life comes amid renewed interest in India’s senior care sector.

According to a report by commercial real estate services and investment firm CBRE, the ageing population in India, particularly over the age of 60, is expected to grow by 160% to reach a total of about 340 million between 2020 and 2050.