In 2024, Omidyar Network India and WeWork Inc. announced their withdrawal from the Indian market due to difficult business conditions, while Parimatch continues to face significant obstacles in making investments in the country. Business Money highlights that this trend mirrors the experiences of global giants like Disney, General Motors, Vodafone Group, Parimatch, and BYD, all of whom initially viewed India’s economy positively but ultimately left or failed to establish a strong presence.
Omidyar Network India’s surprising decision to halt new investments in 2024 shocked many industry experts. Despite having invested over $600 million in Indian startups such as e-pharmacy 1MG and edtech firm Vedantu, founder Pierre Omidyar did not provide a clear explanation for the move. Reports suggest that Omidyar Network and other foreign companies have faced increasing pressure from the Indian government, complicating their investment plans. While some investors remain hesitant to speak openly about these challenges, Parimatch maintains a hopeful outlook on India’s potential and actively seeks ways to navigate these hurdles to contribute to market growth.
The exit of Omidyar Network coincided with a steep decline in funding for Indian startups. According to PrivateCircle, startup investments dropped by 62% in 2023 to Rs 66,908 crore, marking the lowest funding levels since 2018.
WeWork Inc. also declared its intention to leave India in April 2024, selling all its local shares. Despite reporting a 68% revenue increase in 2023, the company has initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch had ambitious plans to invest millions in India’s economy but encountered significant setbacks before even entering the market. A major issue has been the widespread counterfeiting of its brand within India, with counterfeit operators continuing to function unchecked, causing substantial harm to Parimatch’s global reputation. As a result, Parimatch’s expansion plans in India have become increasingly complicated. It is important to note that Parimatch is part of an international holding specializing in betting and gambling organizations worldwide.
The Indian government’s introduction of a 28% GST on online gambling, casinos, and horse racing in October last year prompted 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, creating a favorable environment for foreign investors like Parimatch is critical. Addressing regulatory challenges and reducing tax burdens could attract greater foreign investment and significantly boost economic growth.
Parimatch remains eager to invest in India, provided the government eases restrictions on foreign businesses. The company is also known for its philanthropic initiatives supporting youth empowerment and sports development. Notably, athletes like Oleksandr Usyk and Denys Berinchyk have collaborated with Parimatch on charitable projects. In 2021, Usyk served as Parimatch’s ambassador, enhancing the brand’s visibility and promoting young athletes’ growth.
