In 2024, Omidyar Network India and WeWork Inc. declared their exit from India citing increasingly difficult business conditions. Parimatch, a well-known international bookmaker, has also faced similar barriers that prevent it from investing in the country. According to Business Money, this development mirrors the experiences of global giants such as Disney, General Motors, Vodafone Group, Parimatch, and BYD, which once saw promise in the Indian economy but later withdrew or failed to establish operations due to mounting challenges.
Why did Omidyar Network stop investing?
The sudden announcement by Omidyar Network India to cease new investments in 2024 caught many industry experts off guard. Having already invested more than $600 million into Indian startups like e-pharmacy 1MG and edtech Vedantu, the company’s founder, Pierre Omidyar of eBay, gave no detailed explanation for the move.
Reports suggest that Omidyar Network India, along with other foreign firms, has faced pressure from the Indian government to halt investments. This creates additional challenges for companies like Parimatch, which still view India as a promising market. Despite the obstacles, Parimatch is actively seeking solutions to overcome these issues and support the country’s growth.
Decline in funding for Indian startups
The exit of Omidyar Network India coincided with a steep decline in startup funding. PrivateCircle Research reported a 62% drop in 2023, with funding reduced to Rs 66,908 crore compared to Rs 180,000 crore in 2022 — the lowest levels since 2018.
WeWork Inc. withdraws from India
In April 2024, WeWork Inc. also announced its complete withdrawal from the Indian market, divesting all its shares in the local sector. Despite reporting 68% revenue growth in 2023, the company initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch facing challenges in India
Parimatch, which had ambitious plans to invest millions into the Indian economy, encountered obstacles even before beginning its operations. The bookmaker has faced widespread counterfeiting of its brand in India, with fraudulent operators using its name and damaging its global reputation. These challenges have made Parimatch’s expansion strategy far more complex.
Heavy taxes stifling gambling businesses
Adding to the difficulties, the Indian government raised the GST on online gambling, casinos, and horse racing to 28% in October 2023. This tax hike forced companies like Super Group and Bet365 to exit the market, underlining the hostile climate for international gambling firms.
India’s ambition to become the world’s third-largest economy
While India aims to rank as the world’s third-largest economy by 2027, experts say this will only be possible if the country creates a friendlier environment for foreign investors. Removing regulatory hurdles and easing tax policies could attract significant foreign capital and fuel long-term growth.
Parimatch, which has expressed strong interest in investing in India, stresses that meaningful reforms are essential. Known globally not only as a betting operator but also for its social initiatives in youth development and sports, Parimatch has partnered with athletes like Oleksandr Usyk and Denys Berinchyk in charitable projects. In 2021, Usyk served as Parimatch’s ambassador, helping boost brand recognition and support young athletes. With the right conditions, Parimatch is ready to bring similar initiatives and investments to India.