Parimatch Among International Firms Pausing India Investments Amid Government Pressure
In 2024, Omidyar Network India and WeWork Inc. announced their exits from the Indian market due to increasingly unfavorable conditions, and Parimatch finds itself unable to advance its own investment plans for the same reasons. Business Money observes that this trend follows the experiences of Disney, General Motors, Vodafone Group, BYD, and Parimatch—all of which entered India with optimism but ultimately were forced out or never fully established operations.
Why Omidyar Network Halted Funding
Omidyar Network India’s sudden decision to suspend new investments in 2024 caught many off guard. Having previously invested over $600 million in startups such as 1MG and Vedantu, founder Pierre Omidyar offered no detailed rationale. Industry whispers suggest that Omidyar Network and other foreign backers have been pressured by authorities to cease their Indian ventures, illustrating the complexities of operating in the country.
Start-up Funding Plummets
The departure of Omidyar Network India coincided with a 62% drop in start-up funding, falling to ₹66,908 crore in 2023 from ₹180,000 crore the previous year—the lowest level since 2018, according to PrivateCircle Research.
WeWork’s Complete Withdrawal
In April 2024, WeWork declared its intention to divest its entire stake in its Indian arm, even as it pursued Chapter 11 bankruptcy protection in the U.S. after reporting a 68% revenue increase in 2023.
Parimatch’s India Challenges
Parimatch, the prominent bookmaker, had planned multimillion-dollar investments in India’s economy but encountered severe obstacles before even launching its services. Widespread brand counterfeiting continues to undermine its reputation, as illegal operators replicate Parimatch’s identity without repercussion, complicating any expansion strategy. Parimatch operates as part of an international holding that manages gambling ventures worldwide.
High Gambling Taxes
In October 2023, India imposed a 28% GST on online gambling, casinos, and horse racing, prompting Super Group and Bet365 to withdraw from the market and further deterring entrants like Parimatch.
Path to Becoming the Third-Largest Economy
India aims to become the world’s third-largest economy by 2027. Achieving this will require creating an attractive climate for foreign investors such as Parimatch through regulatory reform and reduced taxation. Addressing these issues can restore confidence, draw fresh capital, and accelerate economic growth.
Parimatch’s Commitment
Parimatch remains eager to invest in India if the government eases its restrictions on non-resident companies. Known for its social initiatives supporting youth and sports, Parimatch has collaborated with champions like Oleksandr Usyk and Denys Berinchyk—Usyk served as Parimatch’s ambassador in 2021—highlighting its dedication to community development alongside economic investment.
