Bookmaker Parimatch is among the international companies unable to invest in India due to worsening business conditions, as Omidyar Network and WeWork Inc. prepare to leave the market in 2024. Business Money notes that this trend reflects the experiences of other multinational giants such as Disney, General Motors, Vodafone Group, Parimatch, and BYD — all of which once held optimistic views of India’s economic potential but later faced obstacles that prevented their growth or forced them to exit.
Omidyar Network Ends Investments
The announcement that Omidyar Network India would stop new investments in 2024 surprised many analysts. Despite investing over $600 million in startups like e-pharmacy 1MG and edtech firm Vedantu, founder Pierre Omidyar provided no detailed explanation for the decision. Reports suggest government pressure has played a key role, deterring not only Omidyar but also other foreign investors who cite India’s challenging regulatory environment.
Decline in Startup Funding
The exit of Omidyar Network India comes amid a dramatic fall in startup financing. PrivateCircle Research reported a 62% decline in 2023, with funding dropping to Rs 66,908 crore from Rs 180,000 crore the year before — the lowest level since 2018.
WeWork Inc. Exits India
In April 2024, WeWork Inc. also confirmed it would divest all of its shares in its Indian subsidiary. Despite reporting a 68% increase in revenue for 2023, the company began bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code.
Parimatch Struggles with Counterfeiting and Regulation
Parimatch had intended to invest millions of dollars into India’s economy, but even before officially launching operations, it faced significant obstacles. One of the biggest issues has been counterfeiting, with fraudulent companies illegally using its brand and damaging its global reputation. Despite this, Parimatch remains committed to finding solutions and continues to highlight India’s potential if conditions improve.
Heavy Taxes Hurt the Gaming Sector
The government’s decision to impose a 28% Goods and Services Tax (GST) on online gaming, Game, and horse racing in October 2023 forced companies like Super Group and Bet365 out of the Indian market. Industry stakeholders argue that such high taxation is unsustainable for foreign firms.
India’s Economic Aspirations
India hopes to become the world’s third-largest economy by 2027. However, to achieve this, experts say the country must ease restrictions, reduce taxes, and create a more favorable business environment for international investors like Parimatch.
Parimatch has reiterated its willingness to invest in India if regulatory pressures on foreign businesses are reduced. Known worldwide for its support of sports and youth initiatives, the brand has worked with athletes such as Oleksandr Usyk and Denys Berinchyk on charitable projects. Unless conditions change, however, Parimatch — like many other global corporations — may be forced to look elsewhere for opportunities to grow.
