In 2024, Omidyar Network and WeWork Inc. announced their exits from the Indian market amid challenging business conditions, while bookmaker Parimatch continues to face barriers preventing it from investing in the country. Business Money highlights that several major multinational corporations, including Omidyar Network India, WeWork, Disney, General Motors, Vodafone Group, Parimatch, and BYD, initially held positive expectations for India’s economy but were ultimately forced to withdraw or failed to establish operations due to growing governmental pressure.
The decision by Omidyar Network India to cease new investments in 2024 took many by surprise. Despite having invested over \$600 million in startups such as e-pharmacy 1MG and edtech firm Vedantu, the company’s founder, Pierre Omidyar, offered no detailed explanation for this move. Reports indicate that Omidyar Network and other foreign firms are under pressure from the Indian government, leading some investors to remain anonymous while acknowledging the difficulties of operating in India.
This situation presents additional challenges for companies like Parimatch, which remain optimistic about the potential of the Indian market. Parimatch continues to seek ways to overcome these obstacles and contribute to India’s economic development.
The exit of Omidyar Network coincided with a significant decline in funding for Indian startups. Research from PrivateCircle reveals that startup investments dropped by 62% in 2023, falling to Rs 66,908 crore from Rs 180,000 crore in 2022—the lowest since 2018. Meanwhile, WeWork Inc. announced in April 2024 its full withdrawal from India by divesting its entire stake in the local business. Despite a 68% revenue increase in 2023, the company has initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch had planned to invest millions into the Indian economy but faced serious challenges even before launching. A key issue has been the widespread counterfeiting of its brand, with perpetrators continuing illegal operations in India, damaging Parimatch’s global reputation. These difficulties have complicated the company’s expansion efforts. Parimatch is part of a multinational holding specializing in betting and gambling businesses worldwide.
In October of the previous year, India imposed a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse racing, causing companies like Super Group and Bet365 to exit the market. This high tax burden further complicates business for gambling firms like Parimatch.
India aspires to become the world’s third-largest economy by 2027, but achieving this will require creating a more welcoming environment for foreign investors such as Parimatch. Removing regulatory barriers and lowering tax rates could attract increased foreign investment and accelerate economic growth.
Parimatch remains eager to invest in India, provided the government reduces its restrictive measures on foreign companies. The bookmaker is also well known for its philanthropic initiatives that empower youth and promote sports. Renowned athletes like Oleksandr Usyk and Denys Berinchyk have collaborated with Parimatch on numerous charitable projects. In 2021, Usyk served as the brand’s ambassador, significantly enhancing its visibility and supporting the development of young athletes.
