Omidyar Network has reportedly decided to withdraw from the Indian market and abstain from initiating new investments in the world's third-largest startup ecosystem. The impact investor is said to be committed to fulfilling the deals it had previously undertaken in India while refraining from making new investments in the country. Over the course of approximately 13 years, Omidyar Network has invested around $500 million in India and has successfully exited investments amounting to $250 million.

The firm has officially announced that Omidyar Network India will cease new investments and undergo a full transition out of the market by the conclusion of 2024. Within the next two months, the board and leadership team will evaluate the optimal approach to oversee the organization's portfolio, acknowledging the extensive and reliable partnerships established by the Omidyar Network India team over the years.

In 2019, Omidyar Network India was established as an independent investment advisory firm, focusing on a strategy and investment thesis specifically tailored for India, developed by the Indian team. Notable entities within Omidyar's Indian portfolio comprise 1MG, Healthkart, Vedantu, WhiteHat Jr, ZestMoney, and Doubtnut.

Recently, ZestMoney, a fintech lending startup formerly valued at $450 million, ceased operations, leading to the dismissal of 150 employees. Additionally, Allen Career Institute, an offline coaching company, acquired the doubt-solving platform Doubtnut in a fire sale for $10 million. Although discussions were underway for Edtech firm Byju's to acquire Doubtnut for $125 million, the deal ultimately fell through.

Omidyar's exit from the Indian market is attributed to a significant shift in the context of the evolving economic landscape since its initial investments in 2010. The company registered an increased Indian-led philanthropy and venture capital, a flourishing startup sector, and the adoption of middle and lower-middle-income focus by multiple funds. Omidyar highlights its active role in catalyzing these changes, emphasizing its unique dual checkbook model to bring the next half billion into the formal economy.

The organization highlighted its distinctive focus on incorporating a dual checkbook model—combining for-profit funding and non-profit investing—to bring the next half billion individuals into the formal economy. Omidyar asserted that this approach has played a pivotal role in supporting the growth of the present startup ecosystem in the country.

Omidyar Network India, founded by eBay's Pierre Omidyar, will exit the Indian market by 2024, halting new investments. The decision is influenced by shifts in the Indian economic landscape.

Image source: India Today