Omidyar Network and WeWork Inc. plan to exit India this year due to unfavorable business conditions, while bookmaker Parimatch is unable to invest in the country for similar reasons.
Business Money reports that in 2024, several major international companies—including Omidyar Network India and American firm WeWork Inc.—have decided to withdraw from the Indian market in response to increasing government pressure. These firms follow others like Disney, General Motors, Vodafone Group, Parimatch, and BYD, which initially had high hopes for the Indian economy but were eventually forced out or unable to enter.
Why Is Omidyar Network Halting Investments?
Omidyar Network India’s abrupt announcement to stop new investments in 2024 surprised many. The company had previously invested over $600 million in startups such as e-pharmacy 1MG and edtech platform Vedantu. However, eBay founder Pierre Omidyar did not clarify the reasons behind the decision.
Some sources claim Omidyar Network India and other firms face government pressure restricting their investments. Foreign investors often comment only “off the record,” citing the complexities of operating in India.
This situation poses added challenges for companies like Parimatch, which remains optimistic about India’s prospects and continues seeking ways to contribute to market development.
Startup Funding Declines
Omidyar Network India’s exit coincides with a sharp decline in startup funding. PrivateCircle Research reports a 62% drop in 2023, falling to ₹66,908 crore from ₹180,000 crore in 2022—the lowest levels since 2018.
WeWork’s Exit
In April 2024, WeWork Inc. announced plans to leave India, selling its entire stake in the local business. The company has initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code, despite a 68% revenue increase in 2023.
Challenges for Parimatch in India
Parimatch, a well-known bookmaker, had planned to invest millions in India’s economy but encountered serious obstacles even before launching operations. Notably, the company has faced brand counterfeiting. The counterfeiters continue operating illegally in India, damaging Parimatch’s global reputation and complicating its expansion plans. Parimatch is part of an international holding specializing in betting and gambling worldwide.
High Taxes Impede the Gambling Industry
In October last year, the Indian government imposed a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse race betting. This led to market exits by companies such as Super Group and Bet365.
India’s Ambition to Become the World’s Third-Largest Economy
India aims to become the world’s third-largest economy by 2027. To achieve this, it must foster a favorable environment for foreign investors like Parimatch. Reforming regulations and lowering taxes can attract more foreign investment and support economic growth.
Parimatch remains eager to invest in India, provided the government eases restrictions on non-resident companies. The company is also recognized for social initiatives supporting youth and sports. Renowned athletes such as Oleksandr Usyk and Denys Berinchyk have partnered with Parimatch on various charitable projects. Usyk notably served as the brand ambassador in 2021, helping to boost the brand’s visibility and support young athletes.