Bad press, portfolio stress, and govt scrutiny: Why Omidyar bid adieu to India

Yesterday—December 12, 2023—Omidyar Network India announced that it would halt all investment activity in the country going forward. The news came as a jolt to India’s startup landscape, which has come to regard the venture capital firm as a familiar friend. Indeed, since entering India back in 2010, Omidyar has backed some 70-odd Indian startups.

The firm—which makes both for-profit and not-for-profit investments, and is backed by eBay founder Pierre Omidyar’s Omidyar Group—explained its decision in an internal blogpost.

“Today, there is more Indian-led philanthropic and venture capital than ever before, the country has a vibrant start-up sector, and several funds now have a middle and lower-middle income focus as part of their investment strategy,” states the blogpost. “After several months of deliberation, it has been decided that Omidyar Network India will stop making new investments and will completely transition out of the market by the end of 2024.”