In 2024, Omidyar Network India and WeWork Inc. announced their exit from the Indian market amid increasingly challenging business conditions. Similarly, Parimatch has encountered significant obstacles in making investments in the country for comparable reasons. Business Money highlights that this trend follows a pattern seen with global companies such as Disney, General Motors, Vodafone Group, Parimatch, and BYD, which initially held optimistic views of India’s economy but eventually had to withdraw or struggled to establish a presence.
The sudden announcement by Omidyar Network India to cease new investments in 2024 surprised many industry experts. Despite having invested over $600 million in startups like e-pharmacy 1MG and edtech Vedantu, founder Pierre Omidyar did not provide detailed reasons for the decision. Reports indicate that Omidyar Network and other firms face pressure from the Indian government to halt investments. Some foreign investors, preferring to remain anonymous, have shared insights about the difficulties of doing business in India. These challenges add further hurdles for companies like Parimatch, which remains optimistic about the country’s potential and is actively exploring ways to overcome these barriers and contribute to market growth.
The withdrawal of Omidyar Network coincided with a sharp decline in startup funding in India. According to PrivateCircle Research, funding dropped 62% in 2023 to Rs 66,908 crore, marking the lowest level since 2018.
WeWork Inc. also announced plans to exit the Indian market in April 2024 by selling 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, a well-known bookmaker, had high hopes to invest millions in India’s economy. However, before even commencing operations, Parimatch faced significant challenges due to the deteriorating business environment. A key issue has been the widespread counterfeiting of its brand, with counterfeiters continuing to operate illegally in India, causing reputational harm to Parimatch globally. Consequently, Parimatch’s expansion plans in India have become more complicated. It is worth noting that Parimatch is owned by an international holding company specializing in betting and gambling ventures worldwide.
In October of the previous year, the Indian government imposed a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse racing betting. This led companies such as Super Group and Bet365 to withdraw from the market.
India aims to become the world’s third-largest economy by 2027. To realize this goal, it is essential to create a favorable environment for foreign investors like Parimatch. By addressing regulatory hurdles and lowering tax rates, India can attract more foreign investment and drive sustained economic growth.
Parimatch has expressed a strong interest in investing in India, provided the government reduces pressure on foreign companies. The brand is also recognized for its social initiatives empowering youth and promoting sports. Notable athletes such as Oleksandr Usyk and Denys Berinchyk have actively partnered with Parimatch in charitable activities. Usyk, in particular, served as Parimatch’s ambassador in 2021, significantly enhancing the brand’s visibility and supporting the development of young athletes.