NEW DELHI (Diya TV) — Omidyar Network India, an investment firm backed by eBay founder Pierre Omidyar and Pam Omidyar, is set to exit the Indian market after a decade of operations. The firm, known for its dual-chequebook investment model, will cease new investments and shift its focus to closing follow-on rounds already committed.

The decision to fully withdraw from India by the end of 2024 was confirmed in a statement, citing the completion of its primary objective of catalyzing impact. The board and leadership team will spend the next two months strategizing on managing the organization’s portfolio while acknowledging existing partnerships.

Omidyar Network India played a critical role in shaping the impact investment sector over the past decade, with a specific focus on the Next Half Billion. The internal blog post mentioned that the decision was influenced by significant changes in the economic landscape since the initial investments in 2010. India has witnessed a surge in philanthropic and venture capital activities, a thriving startup ecosystem, and investment funds targeting middle and lower-middle-income segments.

Established as an autonomous investment advisory firm in 2019, Omidyar Network India operated with an India-centric investment strategy and a dedicated team. The Omidyar Group, active in India since 2010, has channeled over $500 million in investments, allocating nearly $150 million to non-profit endeavors. Approximately 70% of the capital supported for-profit ventures, yielding returns of $250 million over the period, with a distributed paid-in-capital ratio of 0.7.

Omidyar Network India’s investment portfolio includes notable names such as Bounce, Indifi, and 1MG (acquired by Tata Digital). The firm is currently in the process of informing its portfolio companies about the decision, and it did not respond to queries.

This decision comes amid reports from sources familiar with the matter informing TechCrunch about the firm’s abrupt decision to shut down its India operations. While the exact reason for the exit remains undisclosed, it follows the scrutiny faced by Omidyar Network and other NGOs in India over alleged violations of the Foreign Contribution Regulation Act (FCRA).

Despite unveiling new investments in the past two months and engaging in public conferences, Omidyar Network stated that the decision was taken after “several months of deliberation.” The firm highlighted the substantial changes in the economic landscape, citing increased philanthropic and venture capital activities and a vibrant startup sector in India.

The board and leadership team will spend the next two months evaluating how to best manage the portfolio of startups going forward. While Omidyar Network emphasizes the achievement of its primary impact objective in India, a separate individual familiar with the situation mentioned plans by the India team to reunite, raise external funds, and potentially start a new fund, with caution that plans may evolve in the coming months.