Foreign business cuts investments in India under government’s pressure
Foreign business cuts investments in India under government’s pressure
Why Omidyar Network leaves
The news that Omidyar Network immediately ceases fresh investments in the Indian economy in 2024 came out of nowhere. The company has previously invested over $600m in various local startups. Among other things, Omidyar Network supported the likes of e-pharmacy 1MG, edtech Vedantu, fintech startups Kaleidofin, Kiwi, M2P Fintech, and Indifi. Pierre Omidyar, Ebay founder and the fund’s backer, provided no reasonable explanation regarding the decision to cut ties with India.
In his statement, Omidyar says the end of investments comes as a result of “significant change in context and the growth in the economic landscape that the India-based team has experienced since first making investments there in 2010.” What this cryptic message means is unclear. Many of the Indian team were caught off-guard by this statement as well. As Omidyar’s unexpected decision was made public, they were still exploring the options of hiring Indian staff to further invest in various projects.
However, some sources claim that Omidyar Network and a number of American, Australian, European companies were prohibited to invest in India in 2021; the reason for this ban was the investors’ alleged illegal revenue. Some obscure and biased reasons also prevent Parimatch from developing its business operations, even though the company’s extremely enthusiastic about India’s economy booming in the coming years.
You won’t come across this news anywhere. Still, this has a truth ring to it, once you learn the Indian authorities have been consistently pushing the non-residents out of the country’s market, making room for the local enterprises.
Parimatch also felt this nepotism in action. The company’s been developing extensive plans to invest millions in India, and all it got in return was a counterfeit look-alike impostor that operates freely in the bookmaking sector, inflicting all sorts of reputational damages to the international brand of Parimatch.
Foreign investors can only speak “off the record” in regard to this nuisance of a situation. “You can earn money here; you can spend money here, but you can never take wat you have earned here back home,” laments the business community.
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