• Omidyar Network exits India after 13 years amid regulatory probe.
• The firm backed over 120 startups but saw recent failures.
• The surprise exit shocks industry even though Omidyar claims mission achieved as India matures.
Omidyar Network Closes India
Omidyar Network, the philanthropic investment firm backed by eBay founder Pierre Omidyar, is shutting down its India operations after 13 years.
The surprise exit comes a year after Omidyar Network and nine other NGOs were investigated in India for alleged violation of foreign funding regulations.
The reasons behind the shutdown remain unclear, but some claim the pending probe may have been a factor.
Omidyar’s Impactful India Investments
Since 2010, Omidyar Network India has backed over 120 Indian startups across sectors like healthcare, education, and finance. Its investments sought to address challenges faced by nearly 500 million Indians.
High-profile portfolio companies include online pharmacy 1mg, proptech firm Bounce, and edtech unicorn Vedantu.
Just this July, Omidyar reported having $673 million in Indian investments under management and claimed its startups reached 735 million people. But 2023 has proven difficult – two major Omidyar-backed firms, Doubtnut and ZestMoney, shuttered in recent months.
Philanthropy’s Changing Role
The firm denies any connection between the government probe and the exit decision, stating it was “heavily informed by the significant change in context and the growth in the economic landscape” in India since it first invested.
Sources counter that narrative, highlighting recent investments and public appearances by Omidyar India executives.
Omidyar Network says its “primary objective” of catalyzing impact in India has been achieved. It claims India now has ample homegrown capital and no longer requires foreign philanthropic funds. The exit exemplifies India’s maturing startup ecosystem.
Plans for Independent Fund
The India team is reportedly considering plans to spin out a new, independent fund. But any next steps remain uncertain as Omidyar’s board assesses ongoing management of its India portfolio over the next two months.
The sudden withdrawal after over a decade of operations has shocked India’s tech industry. It underscores how even leading global investors can struggle to build sustainable returns in India’s high-potential but uniquely complex market.
Omidyar Network exits India operations after 13 years amid ongoing regulatory probe and portfolio struggles
