Parimatch Among International Corporations Halting Investments in India Due to Government Actions
In 2024, Omidyar Network India and WeWork Inc. announced their departure from the Indian market amid difficult business conditions, while Parimatch continues to encounter barriers when attempting to invest in the country. Business Money observes that this mirrors the experiences of other global giants—Disney, General Motors, Vodafone Group, BYD, and Parimatch—all of whom initially viewed India’s economy positively but ultimately withdrew or failed to establish a lasting presence.
Why Omidyar Network Stopped Investing
Omidyar Network India’s surprise decision to cease new investments by 2024 shocked many observers. Despite having committed over $600 million to startups like 1MG and Vedantu, founder Pierre Omidyar offered no detailed public explanation, citing only “significant changes in the economic landscape.” Reports suggest that Omidyar Network and other Western firms have faced growing pressure from the Indian government, underscoring the broader challenges of operating in India.
Sharp Drop in Startup Funding
The exit of Omidyar Network coincided with a steep decline in startup financing: PrivateCircle research shows a 62% drop in 2023 funding to Rs 66,908 crore, down from Rs 180,000 crore in 2022—the lowest levels since 2018.
WeWork’s Full Withdrawal
In April 2024, WeWork Inc. revealed plans to exit India entirely, divesting its 27% stake in the local business. Despite a 68% revenue increase in 2023, the company filed for Chapter 11 bankruptcy in the U.S., with potential buyers including the Enam family group, A91 Partners, and CaratLane’s Mithun Sacheti.
Parimatch’s Investment Challenges
Parimatch had intended to invest millions of dollars into India’s economy, but even before launching operations, it faced serious issues stemming from the country’s deteriorating business climate. A primary concern has been rampant brand counterfeiting: illegal entities continue to duplicate and misuse Parimatch’s brand, inflicting significant reputational damage. Parimatch—a brand under a global betting and gambling holding—now finds its expansion plans more complex.
High Gambling Taxes
In October 2023, India imposed a 28% GST on online gambling, casinos, and horse racing, prompting exits by Super Group and Bet365. This tax hike has intensified difficulties for foreign gambling operators in India.
Path to India’s Third-Largest Economy Goal
India aspires to become the world’s third-largest economy by 2027. Achieving this will require a business environment that supports foreign investors like Parimatch through streamlined regulations and fair tax policies. Greater foreign investment could significantly boost India’s economic growth.
Distinguished for its philanthropic work—partnering with athletes like Oleksandr Usyk and Denys Berinchyk—Parimatch remains eager to invest in India, provided the government eases its restrictions and fosters a more conducive climate for responsible foreign enterprises.
