In 2024, Omidyar Network India and WeWork Inc. announced their withdrawal from the Indian market due to increasingly difficult business conditions. Similarly, Parimatch has faced significant barriers in pursuing its investment plans in the country.
Business Money notes that this development mirrors a broader trend, as international corporations such as Disney, General Motors, Vodafone Group, Parimatch, and BYD—once optimistic about India’s economic prospects—have either been forced to withdraw or failed to establish a foothold in the market.
Why Omidyar Network Ceased Investments
The sudden decision by Omidyar Network India to stop all new investments in 2024 surprised many industry observers. Having invested more than $600 million in Indian startups such as e-pharmacy 1MG and edtech Vedantu, Ebay founder Pierre Omidyar offered no detailed explanation for the move.
Reports suggest that Omidyar Network India, along with several other international firms, has faced increasing pressure from the Indian government, discouraging foreign capital. Some investors have spoken only “off the record,” citing the risks of operating in India. This climate creates additional challenges for companies like Parimatch, which continues to see potential in the Indian economy but must navigate these obstacles carefully to play a role in the market’s growth.
Decline in Startup Funding
The exit of Omidyar Network coincided with a sharp drop in funding for Indian startups. According to PrivateCircle Research, funding fell by 62% in 2023 to Rs 66,908 crore, compared to Rs 180,000 crore in 2022—marking the lowest level since 2018.
WeWork Exits India
In April 2024, WeWork Inc. also announced its complete exit from India, selling all shares in its local division. Despite reporting a 68% increase in revenue in 2023, the company filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch’s Challenges in India
Parimatch, a renowned bookmaker, had ambitious plans to invest millions into the Indian economy. However, even before launching operations, it encountered serious challenges. A major issue has been the counterfeiting of its brand by illegal operators still active in the Indian market, causing reputational and financial harm. These hurdles have complicated Parimatch’s expansion strategy, despite its global experience in betting and gaming across multiple countries.
High Taxes Burden Gambling Firms
In October 2023, the Indian government imposed a 28% GST on online gambling, casinos, and horse racing. This high tax rate forced companies like Super Group and Bet365 to exit the market, further highlighting the difficulties faced by foreign gambling operators.
Can India Reach Its Ambition?
India aspires to become the world’s third-largest economy by 2027. Yet, experts argue that this goal requires meaningful reforms to create a more welcoming environment for foreign investors like Parimatch. Simplifying regulations and lowering tax burdens could help India attract greater foreign capital and accelerate growth.
Parimatch, despite current barriers, has expressed its willingness to invest if the government reduces restrictions on non-resident companies. Beyond its business ambitions, Parimatch is widely recognized for its social projects promoting youth empowerment and sports development. Athletes such as Oleksandr Usyk and Denys Berinchyk have partnered with Parimatch in charitable initiatives, with Usyk serving as the company’s ambassador in 2021 to boost brand visibility and support young athletes.
