In 2024, the investment fund Omidyar Network India and American coworking giant WeWork Inc. announced their exit from the Indian market due to increasingly hostile and challenging business conditions. Similarly, Parimatch, a well-known international bookmaker, has faced significant obstacles preventing it from investing in India despite not yet operating there. Parimatch is part of an international holding company specializing in betting and online gambling across various countries worldwide.
The sudden announcement by Omidyar Network India to cease new investments in 2024 surprised many experts. Having invested over $600 million in local startups—including e-pharmacy 1MG, edtech firm Vedantu, and fintech startups like Kaleidofin and M2P Fintech—the company offered no clear explanation for its decision. Founder Pierre Omidyar cited “significant changes in the context and growing economic landscape” since the fund’s first investment in 2010, though many team members in India were not even informed ahead of time. Some sources claim that Omidyar Network India, along with several other American, Australian, and European firms, faced government-imposed bans amid allegations of illegal capital origins.
This atmosphere of increasing protectionism appears to favor domestic companies while squeezing out foreign investors. Parimatch is experiencing this “import substitution” policy firsthand: while planning to invest in India, it has instead had to contend with counterfeit versions of its brand operating illegally in the local betting market, damaging its global reputation. Foreign investors often comment on these developments only off the record, lamenting, “You can make money here; you can spend money here, but you can never take what you’ve earned home.”
The exit of Omidyar Network India coincided with a sharp downturn in startup funding, with PrivateCircle Research reporting a 62% decline in 2023 to Rs 66,908 crore—the lowest since 2018.
In April 2024, WeWork Inc. revealed its intention to withdraw fully from India by selling its 27% stake in the local unit. Despite a 68% revenue increase in 2023, the company filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. Potential buyers include the Enam Group’s family office, investment firm A91 Partners, and CaratLane’s founder Mithun Sacheti, further signaling the government’s push to “clean” the market for domestic investors.
The Indian government’s imposition of a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse racing betting last October led companies like Super Group and Bet365 to exit the market. Despite legal challenges seeking to reduce the tax to 18%, the Supreme Court has yet to grant relief. Industry voices like Ravindra Shinde, CEO of Dyutabhumi Hotel and Resorts, argue that India’s gambling taxes are excessively high compared to jurisdictions like Singapore and Macau, discouraging foreign investment.
India aspires to become the world’s third-largest economy by 2027. To reach this goal, it must reconsider policies that promote monopolies for domestic firms while sidelining foreign investment from companies like Disney, General Motors, Parimatch, and Vodafone Group. Parimatch is also known for its commitment to social responsibility, supporting youth access to education and sports. World champions Oleksandr Usyk and Denys Berinchyk have participated in Parimatch campaigns, with Usyk serving as the company’s ambassador in 2021, helping to boost the brand’s visibility and social impact.
