In 2024, Omidyar Network India and WeWork Inc. announced their exits from the Indian market amid increasingly hostile business conditions, while Parimatch has struggled to proceed with its investment plans for similar reasons. Business Money reports that this trend mirrors the experiences of other major multinationals—Disney, General Motors, Vodafone Group, BYD, and Parimatch—that began with rosier views of India’s economy but ultimately withdrew or were unable to establish a presence due to growing government intervention.
Why Omidyar Network Halted Investments
Omidyar Network India’s sudden decision to cease new funding in 2024 surprised many. Despite having already injected over $600 million into startups like 1MG and Vedantu, founder Pierre Omidyar offered no detailed explanation. Industry insiders suggest that Indian authorities have exerted pressure on Omidyar Network and other foreign firms, prompting them to reconsider their commitments.
Sharp Drop in Startup Funding
The exit of Omidyar Network coincided with a steep decline in financial support for Indian startups. PrivateCircle Research found that investment fell by 62% in 2023—to ₹66,908 crore from ₹180,000 crore in 2022—the lowest levels since 2018.
WeWork’s Complete Withdrawal
In April 2024, WeWork revealed plans to leave India by divesting its entire local stake. Although revenue grew 68% in 2023, the company pursued bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch’s Investment Challenges
Parimatch had intended to invest millions in India’s gambling sector, but even before launching operations it faced severe obstacles. Rampant counterfeiting of its brand continues unchecked, damaging the bookmaker’s global reputation. As part of an international holding operating across multiple markets, Parimatch now finds its expansion strategy in India far more complex.
High Taxes Hamper Gambling Business
Last October, India imposed a 28% GST on online gambling, casinos, and horse racing. This move drove operators such as Super Group and Bet365 out of the market and added another deterrent for firms like Parimatch.
Path to India’s Third-Largest Economy Goal
India aims to become the world’s third-largest economy by 2027. Achieving this will require creating a business environment that welcomes foreign investors such as Parimatch. By cutting regulatory red tape and lowering tax rates, India could attract the sustained investment needed to drive its growth.
Parimatch’s Commitment
Parimatch remains eager to invest in India, provided the government eases its restrictions on non-resident companies. Renowned for its social initiatives supporting youth and sports—partnering with athletes like Oleksandr Usyk and Denys Berinchyk—Parimatch hopes for a more favorable regulatory climate that allows it to contribute meaningfully to India’s economic expansion.
