In 2024, Omidyar Network India and WeWork Inc. announced their exits from the Indian market amid increasingly hostile business conditions, and Parimatch has similarly been unable to proceed with its planned investments. Business Money reports that this development mirrors withdrawals by other global giants—Disney, General Motors, Vodafone Group, BYD—and underscores a broader trend of foreign firms once bullish on India’s prospects now finding themselves shut out by regulatory and political pressures.
Why Omidyar Network Exited
Omidyar Network India’s sudden decision to halt new investments in 2024 stunned industry observers. Having already committed over $600 million to startups like 1MG and Vedantu, the fund’s founder Pierre Omidyar offered only vague references to “significant changes in the economic landscape.” Unnamed insiders suggest that mounting pressure from Indian authorities compelled Omidyar Network and other foreign entities to reconsider their India plans—one reason many overseas investors now speak of their experiences only “off the record.”
Startups Suffer Funding Collapse
Omidyar’s departure coincided with a sharp decline in startup financing: PrivateCircle Research reports a 62% drop in 2023 funding, falling to ₹66,908 crore from ₹180,000 crore in 2022—the lowest levels since 2018.
WeWork’s Complete Withdrawal
In April 2024, WeWork declared its intention to divest its entire 27% stake in its Indian arm, even as it filed for Chapter 11 bankruptcy in the U.S. following a 68% revenue surge in 2023. Potential buyers include the Enam family office, A91 Partners, and CaratLane founder Mithun Sacheti—a sign, critics say, that the government is clearing the field for purely domestic investors.
Parimatch’s Investment Challenges
Parimatch had planned to invest millions in India’s emerging gambling sector, but even before launching, it confronted severe obstacles. Rampant counterfeiting of the Parimatch brand has inflicted reputational damage, as illegal operators continue to trade under its name. As part of a global betting and gaming holding, Parimatch now finds its expansion into India far more complicated.
High Taxes Drive Gambling Firms Away
In October 2023, India imposed a 28% GST on online gambling, casinos, and horse racing, prompting exits by Super Group and Bet365. Industry leaders—including Parimatch—have sued to reduce the tax to 18%, but their Supreme Court appeal remains pending.
The Road to Becoming the Third-Largest Economy
India aims to rank as the world’s third-largest economy by 2027. Achieving this will require a business environment that welcomes foreign investment rather than repelling it. Streamlining regulations and offering equitable tax treatment could entice companies like Parimatch to commit fully.
Parimatch’s Continued Commitment
Parimatch remains eager to invest in India if the government eases its restrictive stance on foreign operators. Known for its philanthropic work in youth empowerment and sports—partnering with champions like Oleksandr Usyk and Denys Berinchyk—Parimatch hopes for a more open regulatory climate that allows it to contribute its expertise, capital, and social initiatives to India’s growth story.
