A VR storyteller, Karan Butani's stint with the movies started when he began working with Indian filmmaker Tigmanshu Dhulia as an associate director in 2011. During his association with the filmmaker, Karan has worked on critically acclaimed movies such as Paan Singh Tomar, Saheb Biwi Aur Gangster, and its sequel Saheb Biwi Aur Gangster Returns (2013).

Meanwhile, Karan is also the Chief Strategy Officer at a visual location database media company called RecceTheWorld. At RecceTheWorld, the team attempts to facilitate single channel shooting permissions and also brings film incentives and tax breaks to the forefront, easing off the jobs of location and production managers.

In 2018, Karan made his directorial debut with the crime comedy-drama Phamous, which featured an ensemble cast comprising Jimmy Sheirgill, Shriya Saran, Kay Kay Menon, Pankaj Tripathi, Jackie Shroff, and Mahie Gill. Additionally, his other projects in 2018 include the Shruti Haasan, Amit Sadh, and Vidyut Jammwal-starrer Yaara, and Akshay Kumar's Crack, both of which he is a part of in the capacity of an associate director.