Omidyar Network is set to withdraw from the Indian market, refraining from future investments in the world’s third-largest startup ecosystem, according to sources familiar with the investor’s intentions.
While the impact investor won’t engage in fresh investments in India, it is committed to fulfilling prior deals, insiders added. Omidyar has infused approximately $500 million in India, yielding exits valued at $250 million over a span of about 13 years.
“This moment is not entirely celebratory, but consider this perspective: Omidyar (in India) has accomplished its goals set around 13 years ago when it initiated investments in India. They aimed to play a catalytic role, and that is precisely what they have achieved. Opting to exit on a positive note aligns with this decision,” revealed an informed source to TUT Global.
In an internal blog post, The Omidyar Group affirmed these developments.
“Over the past decade, Omidyar Network India has played a pivotal role in developing the impact investment sector, particularly focused on the Next Half Billion. We take pride in our work in this realm, now drawing increased capital from local VC/impact investors and domestic philanthropists. Having accomplished our primary goal of catalyzing impact, Omidyar Network India will not be pursuing additional investments in India,” communicated Omidyar Network India to TUT Global.
The initial report on this development was disclosed by the news platform Yourstory.
TUT Global cross-verified this information with six portfolio companies, and none of the founders were aware of such a substantial move. To clarify, Omidyar Network India operates independently from the US-based Omidyar Network, serving as a distinct geo-focused dual chequebook entity.
Omidyar Network India functions as the arm of the family office of eBay founder Pierre Omidyar.
In response to inquiries about Omidyar’s exit from India, a founder of a portfolio company told TUT Global that such a development seemed “highly impossible,” citing recent communication with the company as of this week. A company executive expressed similar sentiments.
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The impact investor has supported startups including Zestmoney, DealShare, VerSe (Dailyhunt), Vedantu, and numerous others in the country.
“After several months of contemplation, it has been decided that Omidyar Network India will cease new investments and will fully exit the market by the end of 2024,” stated the company.
“Over the next two months, the board and leadership team will assess the optimal approach to manage the organization’s portfolio, acknowledging the enduring and trusted partnerships established by the Omidyar Network India team,” the company added.
