Impact fund Omidyar Network to exit India

Impact-focused investment firm Omidyar Network India, backer of start-ups such as 1MG, Bounce, and Dealshare, is winding up its operations in the country.

Omidyar Network will stop making new investments in the country and will completely transition out of the market by the end of 2024. The investment fund, which began its investment activities in India in 2010, cited the changed start-up and economic milieu in the country as the primary factor influencing its decision.

“This decision was heavily informed by the significant change in context and the growth in the economic landscape that the India-based team has experienced since first making investments there in 2010. 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,” the company said.

Omidyar Network India is part of the Omidyar Group, a collection of companies, organisations and initiatives, supported by philanthropists Pam and Pierre Omidyar, founder of eBay.

The company's investment strategy in India centred on 'The Next Half Billion' (NHB), denoting the 500 million individuals who became first-time internet users through their mobile phones from 2018 to 2022. These users constitute the second significant wave of internet adoption in India, hence the designation "Next."  The fund invested in more than 70 companies developing solutions for the NHB or the low-income and lower-middle-income populations, focusing on advancing cities, digital society, education and employability, emerging technology, financial inclusion, well-being, and property inclusivity.

It has invested over $500 million in India, of which 70 percent is equity investment and 30 per cent is grants. Indifi, Ashv Finance, Axio, Bijak, Affordplan, Doubtnut, FarMart, DrinkPrime, and Otipy are part of its portfolio in India.

Apart from its equity investments in start-ups, it also provides grants to organisations and initiatives such as Indian Institute for Human Settlements (IIHS), Akshara Foundation and N/Core. Omidyar Network has also invested in funds such as Bharat Inclusive Technologies Seed Fun, Elevar Equity, India Impact Investing Infrastructure Fund (IIIF), and India Quotient Fund (IQF) besides offering financial assistance to several researches including Regulatory Sandbox for India Blueprint: Dalberg, Early Childhood Education Research: FSG, and Improving Governance Through Biometric Authentication and Secure Payments in India: J-PAL.