Impact investment firm Omidyar Network India, backed by eBay founder Pierre Omidyar and Pam Omidyar, is set to exit India after a decade of operations. The India-specific entity, following a dual-chequebook investment model, will no longer make new investments but will complete committed follow-on rounds, according to an unnamed source familiar with the situation. Omidyar Network India, operating independently since 2019, played a crucial role in building the impact investment sector in India, especially focusing on the Next Half Billion. The entity has decided to halt new investments after achieving its primary goal of catalyzing impact.
In a statement, Omidyar Network India expressed pride in its decade-long work and noted the increased attraction of larger pools of capital from local venture capital, impact investors, and domestic philanthropists in the impact investment sector. The Omidyar Group, present in India since 2010, has directed over $500 million in investments, with nearly $150 million allocated to non-profit investments. Approximately 70% of the capital was directed to for-profit investments, resulting in $250 million in returns. The entity will cease new investments and fully transition out of the market by the end of 2024, with a two-month assessment period to manage the organization’s portfolio.
Omidyar Network India has been an investor in various companies, including two-wheeler mobility firm Bounce, SME financing company Indifi, and online pharmacy company 1MG, which was acquired by Tata Digital. The Omidyar Group emphasized the decision’s alignment with the significant change in context and growth in India’s economic landscape since the team’s initial investments in 2010. The country now boasts a vibrant startup sector, increased philanthropic and venture capital led by Indians, and multiple funds with a focus on middle and lower-middle-income segments.
