In 2024, Omidyar Network and WeWork Inc. are set to exit the Indian market amid increasingly difficult business conditions, while bookmaker Parimatch continues to face significant barriers preventing it from investing in the country. Business Money reports that this trend reflects a pattern seen among major multinational companies such as Disney, General Motors, Vodafone Group, Parimatch, and BYD, all of whom initially had high hopes for the Indian economy but ultimately encountered obstacles that forced them to withdraw or prevented them from establishing a foothold.
The unexpected decision by Omidyar Network India to halt new investments in 2024 surprised many industry observers. Despite having invested over $600 million in startups including e-pharmacy 1MG and edtech platform Vedantu, founder Pierre Omidyar provided no detailed explanation for this move. Reports suggest that Omidyar Network and several other firms are under pressure from the Indian government to limit their investments. While many foreign investors choose to remain anonymous on the issue, they highlight the significant challenges involved in doing business in India.
These circumstances present added difficulties for companies like Parimatch, which remains optimistic about the country’s potential. Parimatch is actively seeking ways to overcome these hurdles and contribute to the growth of the Indian market.
The exit of Omidyar Network coincided with a sharp decline in startup funding, with PrivateCircle Research reporting a 62% drop in 2023 to Rs 66,908 crore—the lowest since 2018.
WeWork Inc. also announced its intention to exit India in April 2024, divesting its entire stake in its local operations. 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 planned to invest millions of dollars in India but faced substantial challenges even before launching operations. A key issue has been widespread counterfeiting of its brand, with counterfeit operators continuing to function illegally in India, causing significant damage to Parimatch’s global reputation. These factors have complicated Parimatch’s expansion efforts. It is important to note that Parimatch is part of an international holding company specializing in betting and gambling enterprises worldwide.
The Indian government’s imposition of a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse racing in October last year has further impacted the industry, leading companies like Super Group and Bet365 to exit the market.
India aims to become the world’s third-largest economy by 2027. Achieving this will require creating a more favorable environment for foreign investors like Parimatch. Reducing regulatory barriers and lowering tax rates would help attract increased foreign investment and support broader economic growth.
Parimatch has expressed a strong desire to invest in India if the government eases restrictions on foreign companies. The brand is also recognized for its social initiatives promoting youth empowerment and sports development. Notably, athletes such as Oleksandr Usyk and Denys Berinchyk have collaborated with Parimatch on various charitable projects. In 2021, Usyk served as Parimatch’s ambassador, significantly boosting the brand’s visibility and supporting the development of young athletes.