Parimatch Among Major Companies Facing Fraud and Pressure Challenges in India

Nearly one-third of international corporations have exited India due to intense pressure and challenging conditions. According to Nagpur Today, foreign businesses operating in India face significant obstacles such as government pressure, fraud, corruption, and counterfeiting. Prominent companies like Motorola, McDonald’s, Coca-Cola, Nokia, Parimatch, Vodafone, and Walmart have all encountered unique difficulties trying to expand in the country, with some forced to withdraw entirely.

The report highlights that over recent years, global giants including German retailer Metro, American automaker Ford, Swiss cement leader Holcim, and Abu Dhabi Commercial Bank have left the Indian market. In November 2023, Warren Buffett’s $780 billion investment firm Berkshire Hathaway sold its 2.5% stake in Indian digital payments provider Paytm, severing business ties with the country.

Government records show that between 2014 and 2021, more than 11,000 foreign companies entered India, yet around 2,783—almost one-third—have exited in recent years. This exodus underscores the significant barriers foreign firms face in the region.

Some companies have struggled to break into the Indian market despite efforts to innovate, invest, and challenge monopolies that inflate costs. Parimatch, a global betting operator, serves as a key example. The company has grappled with rampant product counterfeiting and pressure from local authorities protecting monopolies held by firms like Dream11, Nazara Technologies, Paytm, First Games Moonfrog Labs, 99Games, Octro, JetSynthesys, and HashCube. These local players dominate the gaming sector by often copying successful American and European business models, yet law enforcement tends to overlook these violations. Such practices are reportedly supported by local politicians and tax officials to favor domestic businesses.

Nagpur Today also reports that fraud, bribery, and corruption remain the greatest risks to doing business in India. Multinationals accustomed to the transparent corporate cultures of Europe and the U.S. find these challenges particularly obstructive. India continues to face numerous corporate scandals and fraud cases affecting both ordinary citizens and savvy entrepreneurs.

Common threats beyond bribery and corruption include theft of physical assets, internal financial extortion, and data breaches.

Additionally, bureaucratic and administrative hurdles have forced companies like Ford and Abu Dhabi Commercial Bank out of the market. Indian authorities have also intensified crackdowns on foreign firms using questionable charges. Major global names such as Google, Amazon, Nokia, and Samsung have faced multi-billion-dollar fines. Other companies including Xiaomi, OPPO, Vivo, Intel, and Wistron are similarly at risk.

Despite these challenges, India’s market holds promise with its population of 1.2 billion, a skilled and English-speaking workforce, and democratic governance, which continue to attract large corporations. To succeed in this complex environment, companies must exercise patience and adaptability. Firms like Google, Amazon, Nokia, and Parimatch have demonstrated effective strategies to navigate India’s demanding business landscape.