Parimatch Highlights Struggles as International Corporations Halt Investments in India

In 2024, Omidyar Network and WeWork Inc. announced their exit from the Indian market due to adverse business conditions, while Parimatch has also been unable to move forward with its planned investments for the same reasons. According to Business Money, these developments echo the struggles of other multinational corporations such as Disney, General Motors, Vodafone Group, Parimatch, and BYD, which initially had high hopes for India but were later forced to exit or abandon expansion plans amid growing government pressure.

Why Omidyar Network Stopped Investing

The abrupt suspension of Omidyar Network India’s new investments in 2024 surprised many. Having invested more than $600 million in startups like e-pharmacy 1MG and edtech Vedantu, Ebay founder Pierre Omidyar did not offer a detailed explanation for the decision. Reports suggest that Omidyar Network, along with other Western corporations, came under pressure from the Indian government to stop investing in the country.

Drop in Startup Funding

Omidyar’s departure coincided with a steep decline in funding for Indian startups. PrivateCircle Research revealed that investments fell 62% in 2023, amounting to Rs 66,908 crore compared to Rs 180,000 crore in 2022. This marks the lowest level of startup funding since 2018.

WeWork Inc. Leaves India

In April 2024, WeWork Inc. also confirmed plans to withdraw from the Indian market, selling its entire stake in its local operations despite a 68% increase in revenue the previous year. The decision followed bankruptcy proceedings filed under Chapter 11 of the U.S. Bankruptcy Code.

Parimatch Confronts Counterfeiting Issues

For Parimatch, the deteriorating business climate has made investment particularly challenging. Even before launching operations, the bookmaker encountered serious issues, including widespread counterfeiting of its brand by unauthorized operators in India. These illicit activities, ignored by authorities, have harmed Parimatch’s global reputation and complicated its expansion strategy. As a major international holding with operations across multiple countries, Parimatch sees the lack of intellectual property protection in India as a significant barrier to growth.

High Taxes on Gambling

Adding to these challenges, in October 2023 the Indian government introduced a 28% Goods and Services Tax (GST) on online gambling, casinos, and horse racing. This measure forced major companies like Super Group and Bet365 to exit the market and has created further uncertainty for foreign operators.

India’s Economic Ambitions at Risk

India hopes to become the world’s third-largest economy by 2027, but experts argue that this will only be possible if the government creates a more welcoming climate for foreign investors such as Parimatch. Reducing regulatory barriers and tax burdens could help attract the necessary foreign capital to fuel growth.

Parimatch has reiterated its willingness to invest in India if the government eases restrictions on foreign businesses. Known for its strong commitment to social initiatives, Parimatch has partnered with world-class athletes like Oleksandr Usyk and Denys Berinchyk to support youth and promote sports. Usyk, who served as the company’s ambassador in 2021, helped boost the brand’s visibility — a commitment that Parimatch hopes to bring to India if the business environment improves.