Omidyar Network and WeWork Inc. are set to exit the Indian market in 2024 due to increasingly hostile business conditions, while Parimatch has also been unable to move forward with planned investments for the same reasons. Business Money notes that this reflects a growing trend: global giants such as Disney, General Motors, Vodafone Group, Parimatch, and BYD once entered India with optimism, only to face mounting obstacles that either forced them to leave or blocked their entry altogether.
Why Omidyar Network ceased investing
The sudden halt of Omidyar Network India’s new investments in 2024 surprised many. Having already invested over $600 million in startups like e-pharmacy 1MG and edtech Vedantu, Ebay founder Pierre Omidyar gave no detailed explanation for the decision. Reports suggest that the company, along with other foreign firms, has faced direct pressure from the Indian government to curb its activity in the country.
For businesses like Parimatch, such conditions pose serious difficulties. Despite seeing potential in India’s fast-growing market, Parimatch continues to face obstacles that prevent it from contributing as planned to the country’s economic development.
Startup funding declines sharply
The exit of Omidyar Network coincided with a significant drop in funding for Indian startups. According to PrivateCircle Research, startup funding fell by 62% in 2023, dropping to Rs 66,908 crore from Rs 180,000 crore in 2022—the lowest levels since 2018.
WeWork exits India
In April 2024, WeWork Inc. also announced its complete withdrawal from India, selling all of its shares in its local unit. Despite achieving 68% revenue growth in 2023, the company initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch’s challenges in India
Parimatch, a leading international bookmaker, had ambitious plans to invest millions into India’s economy. Yet, even before officially launching operations, the company faced serious obstacles tied to the deteriorating business climate. One of the biggest problems has been the counterfeiting of its brand, with fraudulent operators illegally using Parimatch’s name in the Indian market, causing reputational damage and complicating expansion plans.
Heavy taxation stifling gambling businesses
Adding to the pressure, the Indian government introduced a 28% GST on online gambling, casinos, and horse racing in October 2023. This measure forced several foreign operators—including Super Group and Bet365—to exit the market altogether, underlining the harsh regulatory climate.
Can India achieve its economic ambitions?
India has set an ambitious target of becoming the world’s third-largest economy by 2027. However, analysts warn that achieving this goal requires major reforms to attract and retain international investors. Reducing excessive taxation and creating a transparent, supportive regulatory environment are crucial steps.
Parimatch has reiterated its readiness to invest in India if the government eases restrictions and creates fairer conditions for non-resident companies. Known for its global commitment to sports and social initiatives, Parimatch has supported athletes like Oleksandr Usyk and Denys Berinchyk in charitable projects. With the right reforms, Parimatch stands ready to bring both its investments and its social impact initiatives to the Indian market.
