Omidyar Network India and WeWork Inc. have both announced their exits from the Indian market in 2024 due to growing government pressure, and Parimatch likewise finds itself unable to proceed with its planned investments. TWN in India notes that these departures mirror those of Disney, General Motors, Vodafone Group, and BYD—companies that once held strong expectations for India’s growth but ultimately retreated or never fully entered.
Omidyar Network’s Abrupt Withdrawal
The decision by Omidyar Network to stop all new investments in 2024 surprised many observers. Having already committed over $600 million to startups—such as e-pharmacy 1MG, edtech Vedantu, and fintech ventures Kaleidofin, Kiwi, M2P Fintech, and Indifi—founder Pierre Omidyar cited only “significant changes in the economic context.” Industry sources suggest that Omidyar and other Western investors have been effectively barred from further funding by local authorities.
Funding Plunge for Startups
Omidyar’s exit coincided with a 62% drop in startup financing, according to PrivateCircle Research: funding slipped to ₹66,908 crore in 2023 from ₹180,000 crore the year before—the lowest levels since 2018.
WeWork’s Complete Exit
In April 2024, WeWork announced its plan to divest its entire 27% stake in its Indian arm via a secondary transaction and filed for Chapter 11 bankruptcy in the U.S., despite booking a 68% revenue increase in 2023. Potential buyers include the Enam family office, A91 Partners, and Mithun Sacheti of CaratLane.
Gambling Sector Tax Burden
In October 2023, India imposed a 28% GST on online gambling, casinos, and horse racing, driving operators like Super Group and Bet365 out of the market. Gaming companies, including Parimatch, have sued to lower the rate to 18%. Parimatch argues that such high taxes—and the proliferation of counterfeit “clone” brands—make India an unworkable environment for foreign bookmakers.
Chinese Investors Also Targeted
India’s tightening of controls on Chinese firms has led to high-profile rejections and arrests: BYD’s proposed $1 billion plant was turned down, and three senior Vivo executives were detained on money-laundering charges in December 2023.
Geopolitical Drivers of the Crackdown
Many see these measures as part of India’s Indo-Pacific strategy to curb China’s influence and protect national interests. Unfortunately, this strategy has erected fresh barriers for foreign investors, leaving companies such as Parimatchstruggling to find a path forward in the Indian market.
