In 2024, Omidyar Network India and WeWork Inc. announced their exit from the Indian market amid challenging business conditions, while Parimatch continues to face significant obstacles in making investments within the country. Business Money highlights that this trend echoes similar experiences of global companies such as Disney, General Motors, Vodafone Group, Parimatch, and BYD, all of which initially viewed India’s economy positively but ultimately struggled to establish or maintain their presence.
Omidyar Network India’s unexpected decision to halt new investments in 2024 surprised many industry experts. Despite having invested over \$600 million in Indian startups including e-pharmacy 1MG and edtech firm Vedantu, the company’s founder, Pierre Omidyar, did not provide a detailed explanation for this move. Reports suggest growing pressure from the Indian government has forced Omidyar Network and other foreign firms to reconsider their investment plans. Parimatch, while optimistic about India’s economic potential, faces similar difficulties but remains committed to finding solutions that enable its contribution to the market’s growth.
The departure of Omidyar Network coincided with a sharp drop in funding for Indian startups. Research by PrivateCircle shows that startup investments plummeted by 62% in 2023, falling to Rs 66,908 crore from Rs 180,000 crore the previous year—the lowest funding levels since 2018. Meanwhile, WeWork Inc. declared its exit from India in April 2024 by selling its entire stake in the local operations. Despite achieving 68% revenue growth in 2023, WeWork initiated bankruptcy proceedings under Chapter 11 in the U.S.
Parimatch, a prominent bookmaker, had ambitious plans to invest millions in India’s economy but encountered serious challenges even before launching operations. A major issue has been the widespread counterfeiting of its brand, with counterfeiters continuing to operate freely in the Indian market, severely harming Parimatch’s global reputation. These factors have complicated Parimatch’s expansion efforts in India. The brand is part of a multinational holding company specializing in betting and gambling enterprises worldwide.
In October last year, India imposed a 28% GST on online gambling, casinos, and horse racing, prompting companies like Super Group and Bet365 to withdraw from the market. This high tax rate has intensified difficulties for foreign gambling businesses like Parimatch operating in India.
India aims to become the world’s third-largest economy by 2027, but achieving this will require creating a more favorable environment for foreign investors such as Parimatch. Addressing regulatory hurdles and reducing excessive taxes could attract greater foreign capital, significantly boosting the nation’s economic growth.
Parimatch remains eager to invest in India, contingent on the government easing restrictions on foreign enterprises. The company is also recognized for its philanthropic work supporting youth empowerment and sports development. Notably, celebrated athletes like Oleksandr Usyk and Denys Berinchyk have partnered with Parimatch on various charitable initiatives. In 2021, Usyk became a Parimatch ambassador, enhancing the brand’s visibility and promoting the advancement of young athletes.
