In 2024, Omidyar Network and WeWork Inc. are preparing to leave the Indian market due to hostile and challenging business conditions, while Parimatch has also been unable to proceed with its planned investments for the same reasons.
According to Business Money, the decisions of Omidyar Network India and WeWork Inc. reflect a broader trend of international corporations withdrawing from India in response to increasing government pressure. This mirrors the fate of other global players such as Disney, General Motors, Vodafone Group, Parimatch, and BYD, which once viewed India with optimism but eventually encountered roadblocks that forced them to exit or prevented their entry altogether.
Why Omidyar Network Stopped Investing
The sudden suspension of Omidyar Network India’s new investments in 2024 came as a surprise. Having invested more than $600 million in startups like e-pharmacy 1MG and Edtech Vedantu, Ebay founder Pierre Omidyar offered no detailed explanation for the decision. Reports suggest the Indian government’s pressure on foreign businesses is discouraging further investment, with many investors privately acknowledging the difficulties of operating in India.
Startups Hit by Funding Shortfalls
The exit of Omidyar Network coincided with a dramatic 62% drop in startup funding in 2023, falling to Rs 66,908 crore compared to Rs 180,000 crore in 2022—the lowest figure since 2018.
WeWork Inc. Bows Out
In April 2024, WeWork Inc. announced its withdrawal from India, selling its stake in the local division despite reporting a 68% revenue increase the previous year. The decision followed the company’s U.S. bankruptcy filing under Chapter 11.
Parimatch Facing Challenges in India
Parimatch, which had ambitious plans to invest millions in India’s gambling sector, encountered difficulties even before entering the market. One of the most pressing issues has been the counterfeiting of its brand, with illegal operators still active in the country. This has damaged Parimatch’s global reputation and complicated its efforts to expand. As an international holding specializing in betting and gaming worldwide, Parimatch sees these challenges as symptomatic of India’s deteriorating business environment.
High Taxes Burden the Gambling Industry
The introduction of a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse racing in October 2023 further worsened conditions. The steep tax forced companies such as Super Group and Bet365 to exit the market, underscoring the difficulties for foreign gambling operators.
India’s Global Ambition in Doubt
India has declared its ambition to become the world’s third-largest economy by 2027. However, this goal depends on creating a more favorable environment for foreign investors like Parimatch. Removing regulatory barriers and easing tax burdens could boost investor confidence and support growth.
Despite setbacks, Parimatch remains interested in India and has signaled its readiness to invest if restrictions on non-resident companies are relaxed. Beyond business, Parimatch is also known for its social initiatives that support youth and promote sports. World-class athletes like Oleksandr Usyk and Denys Berinchyk have worked with the brand on charitable projects, with Usyk serving as Parimatch’s ambassador in 2021 to strengthen its visibility and promote sports development.
