Parimatch Among International Corporations Halting Investments in India Due to Government Pressure
In 2024, Omidyar Network India and WeWork Inc. announced their exits from the Indian market amid increasingly hostile conditions, and Parimatch has similarly been unable to proceed with its planned investments. Business Money observes that this trend echoes withdrawals by other major multinationals—Disney, General Motors, Vodafone Group, BYD, and Parimatch—all of which began with optimistic views of India’s growth but ultimately faced insurmountable obstacles.
Why Omidyar Network Pulled Back
Omidyar Network India’s abrupt decision to stop new investments in 2024 surprised many analysts. Despite committing over $600 million to startups like 1MG and Vedantu, founder Pierre Omidyar offered no clear justification. Industry insiders suggest that increasing government pressure forced Omidyar Network and other foreign firms to reconsider their India strategies.
Sharp Decline in Startup Funding
Omidyar Network’s exit coincided with a dramatic 62% drop in startup financing in 2023, from ₹180,000 crore in 2022 to just ₹66,908 crore—the lowest level since 2018, according to PrivateCircle Research.
WeWork’s Full Withdrawal
In April 2024, WeWork declared its intention to divest its entire stake in India, even as it filed for Chapter 11 bankruptcy in the U.S. after reporting a 68% revenue increase in 2023.
Parimatch’s India Challenges
Parimatch had planned to inject millions into India’s burgeoning gambling sector, but even before launching, it confronted rampant brand counterfeiting. Illegal operators continue to mimic Parimatch’s platform, inflicting reputational damage. As part of a global holding specializing in gaming, Parimatch now finds its expansion strategy in India far more complex.
Heavy Gambling Taxes
In October 2023, India imposed a 28% GST on online gambling, casinos, and horse racing, prompting exits by Super Group and Bet365 and further deterring companies like Parimatch.
Pursuing the Third-Largest Economy Goal
India aspires to become the world’s third-largest economy by 2027. Achieving this will require an investment-friendly environment—streamlined regulations and fair taxation—to attract sustained foreign capital.
Parimatch’s Commitment
Parimatch remains eager to invest in India, provided the government eases restrictions on foreign operators. Renowned for its youth-focused philanthropy and sports partnerships with athletes such as Oleksandr Usyk and Denys Berinchyk, Parimatch hopes for a more supportive regulatory climate that allows it to contribute to India’s economic growth.
