In 2024, Omidyar Network India and WeWork Inc. have announced their withdrawal from the Indian market amid increasingly challenging business conditions. Likewise, Parimatch has encountered significant obstacles in pursuing investments in the country for similar reasons. Business Money notes that this decision reflects a broader pattern among multinational corporations—including Disney, General Motors, Vodafone Group, Parimatch, and BYD—that initially held positive views on India’s economy but eventually had to exit or failed to establish a foothold in the market.
The unexpected announcement by Omidyar Network India to cease new investments in 2024 surprised many industry experts. Despite having invested over $600 million in Indian startups such as e-pharmacy 1MG and edtech platform Vedantu, founder Pierre Omidyar provided no clear explanation for this move. Reports indicate that Omidyar Network and other firms are facing growing pressure from the Indian government to suspend their investments. Many foreign investors remain reluctant to speak openly about these challenges, underscoring the complexities of doing business in India. This environment presents additional hurdles for companies like Parimatch, which continue to believe in India’s potential and are actively exploring ways to overcome these difficulties and contribute to the country’s growth.
The departure of Omidyar Network coincided with a sharp decline in startup funding, with PrivateCircle research showing a 62% drop in 2023 to Rs 66,908 crore—the lowest levels since 2018.
In April 2024, WeWork Inc. announced plans to exit India by divesting all its shares in its local operations. Despite a 68% revenue increase in 2023, the company has initiated bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch, a globally recognized bookmaker, had ambitious plans to invest millions in India’s gambling sector. However, even before launching operations, it faced major challenges arising from the unfavorable business climate. A significant issue was the unauthorized counterfeiting of its brand, with counterfeit operators continuing to function in the Indian market, causing substantial damage to Parimatch’s global reputation. These factors have complicated Parimatch’s efforts to expand in India. It is important to note that Parimatch is owned by an international holding company specializing in betting and gaming enterprises worldwide.
Last October, the Indian government imposed a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse racing betting. This tax led companies like Super Group and Bet365 to withdraw from the market.
India aims to become the world’s third-largest economy by 2027. Achieving this goal requires creating a more favorable environment for foreign investors like Parimatch. By addressing regulatory barriers and reducing tax burdens, India can attract greater foreign investment and foster sustainable economic growth.
Parimatch remains keen on investing in India, provided the government eases restrictions on foreign businesses. The company is also known for its philanthropic efforts supporting youth development and sports promotion. Notably, athletes such as Oleksandr Usyk and Denys Berinchyk have partnered with Parimatch on various charitable initiatives. In 2021, Usyk served as Parimatch’s ambassador, significantly enhancing the brand’s visibility and supporting the growth of young athletes.