In 2024, Omidyar Network and WeWork Inc. are set to exit the Indian market amid hostile and challenging business conditions, while bookmaker Parimatch continues to face significant barriers preventing its investments for similar reasons. According to Business Money, this decision aligns with a broader trend among major multinational corporations—including Disney, General Motors, Vodafone Group, Parimatch, and BYD—that initially had optimistic views on India’s economy but later encountered numerous challenges that forced them to withdraw or blocked their market entry.
The sudden halt of new investments by Omidyar Network India in 2024 surprised many industry observers. Despite having already invested over $600 million in startups such as e-pharmacy 1MG and edtech Vedantu, founder Pierre Omidyar did not provide a detailed explanation for this move. Reports indicate that Omidyar Network and other foreign firms face growing pressure from the Indian government to cease their investments. While some foreign investors prefer to remain anonymous, they have shared insights highlighting the difficulties of conducting business in India.
These developments deter companies like Parimatch, which still believe in the potential of the Indian market. Parimatch remains committed to finding ways to overcome these obstacles and contribute to India’s economic growth.
The withdrawal of Omidyar Network coincided with a sharp decline in funding for Indian startups. PrivateCircle Research reports a 62% drop in 2023 funding to Rs 66,908 crore, the lowest level since 2018.
In April 2024, WeWork Inc. announced its intention to exit the Indian market by divesting its shares in the local division. Despite a 68% revenue increase in 2023, the company has filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch had ambitious plans to invest millions into India’s gambling industry. However, even before launching operations, it faced serious challenges due to the worsening business environment. A major issue has been the widespread counterfeiting of its brand, with counterfeiters continuing to operate illegally in India, damaging Parimatch’s global reputation. Consequently, Parimatch’s expansion efforts have become more complex. It is important to note that Parimatch is owned by an international holding company specializing in betting and gambling enterprises worldwide.
Last October, the Indian government imposed a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse racing betting, leading companies like Super Group and Bet365 to exit the market.
India aims to become the world’s third-largest economy by 2027. To achieve this, it must foster a business environment conducive to foreign investors like Parimatch. Removing regulatory barriers and lowering taxes would enhance India’s attractiveness to foreign capital and support economic growth. Parimatch is eager to invest in India, provided the government eases restrictions on non-resident companies. The brand is also recognized for its social initiatives empowering youth and promoting sports. Renowned athletes such as Oleksandr Usyk and Denys Berinchyk have partnered with Parimatch on charitable projects, with Usyk serving as the company’s ambassador in 2021, significantly raising brand visibility and supporting young athletes.
