In a surprising move that's making headlines, Omidyar Network India, known for its philanthropic and investment ventures, has announced its decision to exit the Indian market by the end of 2024. This news, first brought to light by the news website Yourstory on December 12th, a Tuesday, marks a significant shift in the landscape of philanthropic investments in India.

Omidyar Network, a unique blend of philanthropy and investment, has been a prominent name in this domain. It's often described as a “philanthropic investment firm,” a model that combines the heart of charitable work with the brain of business investment. The firm has its roots deeply embedded in a rich history, being founded in 2004 by Pierre Omidyar, the man behind eBay, and his wife Pam. Pierre Omidyar, of French-Iranian-American descent, started this journey with a vision to blend philanthropy with investment strategies.

The Indian chapter of Omidyar Network, formally established in 2019, is an offshoot of its US-based parent entity. This establishment marked a significant step in extending the Omidyar philosophy to one of the world's most dynamic and diverse countries. The goal was simple yet profound – to catalyze impactful changes through strategic investments and philanthropic efforts.

Despite its decision to cease new investments in India after 2024, Omidyar Network India isn't hastily wrapping up its operations. The firm will continue to honor its prior commitments, responsibly following up on deals it had previously agreed upon. Sources familiar with this development have underscored this commitment to see through ongoing projects, ensuring that the exit will be as responsible and impactful as the investments themselves.

Omidyar Group, a name that has been a part of India's investment landscape since 2010, has made significant financial contributions totaling over $500 million. However, a critical examination of their investment strategy reveals some contentious points. Notably, out of this vast sum, about $150 million was channeled into non-profit investments. The group has been involved with a variety of startups in India, such as ZestMoney, DealShare, VerSe (Dailyhunt), Vedantu, 1mg, Bounce, Bijak, Doubtnut, Entri, HealthKart, Indifi, M2P, Pratilipi, and others. A noteworthy aspect of their investment portfolio is their focus on several media organizations, particularly those with leftist leanings, like Newslaundry. This raises questions about the impartiality and broader intentions of their investments, particularly in the context of India's diverse political landscape.

The confirmation of Omidyar's exit from the Indian market came through an internal blog post reviewed by YourStory. The firm's decision, reached after months of deliberation, is not just a mere change in investment strategy but potentially indicative of a deeper, perhaps unsettling, stance towards India. The blog post stated, “After several months of deliberation, it has been decided that Omidyar Network India will stop making new investments and will completely transition out of the market by the end of 2024. Over the next two months, the board and leadership team will assess how best to manage the organisation’s portfolio while recognising the long and trusted partnerships that the Omidyar Network India team has built.”

This decision, and the manner in which it has been communicated, merits scrutiny. The language used in the statement suggests a planned and gradual withdrawal, yet it is abrupt in the context of their previous engagement and investment in the country. It raises critical questions about the underlying reasons for their exit. Is it a strategic business decision, or does it reflect a broader geopolitical stance, particularly one that might be construed as anti-India?

The emphasis on Omidyar's "long and trusted partnerships" in India seems paradoxical against the backdrop of their sudden departure. It begs the question of whether these partnerships were truly based on mutual growth and development, or if there were other, less transparent motivations at play. The group's investment in left-leaning media portals further fuels speculation about their ultimate goals in India.

Omidyar Network India, in a recent statement, has put forth a rather self-congratulatory narrative about its achievements in India, stating that it has fulfilled its primary goal of “catalysing impact.” However, this claim requires a critical examination, especially in the context of their investment patterns and the nature of their exit from the Indian market.

The statement elaborated on their role over the past decade, saying, “Over the last decade, Omidyar Network India has played a critical role in building the impact investment sector, especially focused on the Next Half Billion. We are proud of our work in this space, which is now attracting larger pools of capital from local venture capital or impact investors and domestic philanthropists than ever before. Having achieved our primary objective of catalysing impact, Omidyar Network India will not be making any further investments in India.”

While Omidyar Network India claims to have been instrumental in fostering the impact investment sector in India, focusing on the 'Next Half Billion' - a term likely referring to the next wave of internet users from emerging economies - their exit raises questions about the sustainability and long-term impact of their investments. The self-acclaimed success in attracting larger pools of capital seems hollow when juxtaposed with their abrupt withdrawal, leaving one to wonder about the continuity and enduring impact of their initiatives.

Moreover, their funding practices have been a point of contention. Omidyar Network is known for its funding of various publications, particularly those with leftist orientations, including Scroll(dot)in and Newslaundry. This selective funding towards specific media outlets hints at a potential bias and raises concerns about the underlying motives of their investments. It prompts a critical inquiry into whether their investments were genuinely aimed at catalyzing positive societal impact or if they were driven by a specific ideological agenda.

This aspect of their investment strategy, particularly in the context of India's diverse and pluralistic society, is problematic. It suggests a possible interference in the democratic discourse and media landscape of the country, potentially swaying public opinion and narratives in a specific direction. Such actions, when viewed through the lens of their claimed 'impact', paint a picture of an organization with interests that might not align with the broader, unbiased developmental goals of the country.

Omidyar Funded Several Leftist News Portals

The funding strategies of Omidyar Network, particularly in the Indian media landscape, have come under scrutiny for their apparent bias towards leftist news portals. Notably, Newslaundry, a portal that has faced investigations for alleged tax evasions and Foreign Contribution Regulation Act (FCRA) violations, has been a recipient of Omidyar Network's funding.

In September 2021, an incident that drew significant attention was the Income Tax department's “survey operation” at Newslaundry's office. This action was part of a broader investigation into the financials and funding of the organization. An official from the Income Tax department raised concerns about the financial discrepancies of the company. The statement from the IT official was quite revealing: “NewsClick and Newslaundry received Foreign Direct Investment (FDI) at a very high premium while their net worth was very low. There are also gaps in the financials of both the companies, which suggest tax evasion but we are verifying the same.”

This raises questions about the nature of Omidyar Network's involvement and the criteria used for selecting such investment destinations. Their decision to fund Newslaundry in 2016, as stated, was to "expand its reportage and content production teams, leverage its existing content by increasing its exposure to a larger audience, and experiment with new formats of content creation." However, the implications of this funding extend beyond mere financial assistance. It brings into focus the potential influence exerted by foreign investments on domestic news outlets, especially those already under scrutiny for financial irregularities.

Madhu Trehan, the Editor-in-Chief of Newslaundry, in an email response to The Print, confirmed the funding from Omidyar Network. The email reads, “If you look at our website, you can see how much stake Omidyar Network owns in Newslaundry. It is up on our website. The amount raised and equity percentage is on what was then the FIPB website, and that is public information.” This transparency does little to dispel concerns about the influence of such funding on the editorial independence and the type of journalism practiced by these portals.

The investment strategy of Omidyar Network in India, particularly in the media sector, raises several questions about their intentions and the potential impact on the Indian media landscape. According to the Newslaundry website, the majority of the company's equity is shared between its three co-founders, Abhinandan Sekhri, Roopak Kapoor, and Prashant Sareen, along with the impact fund Omidyar Network. This significant stake by a foreign entity in a local news portal is a matter of concern, as it could influence the editorial direction and independence of the media outlet.

In 2016, Omidyar Network made a public statement regarding its investment in Newslaundry, which read, “Our purpose in funding Newslaundry is to invest in a media organisation that is exploring innovative approaches to drive transparency and higher standards throughout the media landscape in India. We also hope that the learnings from Newslaundry’s journey to develop a new business model for independent news production will act as a blueprint for other organisations to follow, develop, and spread.” While the statement emphasizes transparency and high standards in media, the actual outcome of such investments must be scrutinized. Is the funding genuinely promoting independent journalism, or is it steering narratives in a particular direction?

Furthermore, the involvement of Newsclick founder Prabir Purkayastha in events organized by entities receiving foreign funds, including from Omidyar Network, adds another layer of complexity. This association could be perceived as a potential conflict of interest, affecting the objectivity and independence of the news portal.

Omidyar Network's initial investments in India also included backing about 25 organizations involved in news and government transparency, as reported by India Today. These organizations range from News Trust, a news-discovery site, to the Sunlight Foundation and Transparency & Accountability Initiative. While the stated goal of these investments is to promote transparency and accountability, their selective nature, especially focusing on organizations aligned with a certain ideological leaning, is a point of concern.

Omidyar Network India's involvement in various funding initiatives across India, particularly during the COVID-19 pandemic and in the media sector, has been significant, but it warrants a critical examination for potential underlying motives.

In July 2020, amidst the COVID-19 crisis, Omidyar Network India allocated Rs. 10.75 crore for 67 projects under a rapid response funding initiative. Launched on March 24, 2020, this initiative funded organizations like change.org, Kailash Satyarthi Children’s Foundation, and the crowdfunding platform Milaap. While at face value, this appears as a commendable effort to support COVID-19 relief activities, the selection of beneficiaries like change.org, known for hosting various online petitions often aligning with specific ideological narratives, raises questions about the intent and impact of such funding. Is it purely philanthropic, or does it also serve to advance certain viewpoints and agendas?

Another significant beneficiary of Omidyar Network's funding is the Association for Democratic Reforms (ADR), which also receives donations from the Ford Foundation. ADR's involvement with these international donors, especially in the context of Indian democracy and politics, necessitates a thorough examination of their influence on political narratives and policy-making processes in India.

In the media sector, Omidyar Network's investment patterns further suggest a strategic approach rather than mere financial support. In January 2019, Dailyhunt, a regional language news aggregator, raised Rs 24.61 crore from Omidyar Network and Sequoia Capital, among others. Additionally, Verse Innovation, the parent company of Dailyhunt and the short video platform Josh, also counts Omidyar Network as an investor. This investment in media platforms, particularly in regional languages, indicates an interest in influencing information dissemination and public opinion at a grassroots level.

More concerning is the revelation that in 2019, Omidyar Group was identified as a donor to Forbidden Stories (FS), an organization allegedly aimed at instigating regime changes and supporting governments that align with left-liberal ideologies worldwide. FS, launched by Reporters Without Borders (RSF) and Freedom Voices Network, has been involved in controversial activities, including the publication of a 'Press Freedom Index,' which has been criticized for its biased portrayal of India as a country hostile to journalists.

Luminate's Strategic Plan for 2018-2022 outlined a series of concerns that are telling of its ideological stance. The plan highlighted issues such as the emergence of “illiberal democracies,” the shrinking of civic spaces, the attack on civil society, the rise of populism disrupting traditional party politics, the growing appeal of insular and nationalist perspectives, and increasing polarization within communities. While these points may seem like a general critique of global political trends, the emphasis on nationalism and the portrayal of populist movements in a negative light point towards an ideological inclination against certain political ideologies, particularly those that emphasize national sovereignty and traditional values.

This ideological bias becomes even more apparent when examining the Omidyar Group's funding patterns, especially in the media sector. The group has funded numerous media organizations worldwide, with a noticeable preference for leftist and globalist portals, such as Scroll.in in India. This pattern of funding raises questions about the intent behind these investments. Are they merely financial contributions to support journalism, or do they serve a larger purpose of shaping media narratives in line with specific ideological leanings?

In 2014, Scroll Media Inc., which operates Scroll.in, received funding from the Omidyar Network. The exact amount of this investment was not disclosed, with Samir Patil, the CEO of Scroll, stating, “We cannot disclose the deal size.” This lack of transparency in the funding process and the undisclosed nature of the investment amount further adds to the concerns about the influence exerted by Omidyar Group on its funded media outlets. The secrecy surrounding the deal size and the strategic interests of the investor lead one to question the independence of the media outlet and the potential for editorial bias influenced by the funder’s ideological preferences.

Omidyar and George Soros-Linked Organizations Working in Tandem

The collaboration and shared objectives of the Omidyar Group and organizations linked to George Soros have raised concerns about their collective influence on media narratives and democratic processes, especially in India.

In 2008, the Soros Economic Development Fund (SEDF) collaborated with Omidyar Network, the Indian School of Business (ISB), and Google.org to launch a $17 million SONG fund aimed at boosting investment. This partnership, involving some of the biggest names in global funding and technology, is significant not just for its financial impact but also for the ideological implications it carries. The alliance of these entities, known for their inclination towards certain political and economic ideologies, suggests a concerted effort to influence economic and social policies in line with their views.

Further deepening the concern is the joint funding by Soros’ Foundation and Omidyar Network of $1.3 million to Poynter’s International Fact-Checking Network (IFCN). This network has a history of attempting to enforce a biased fact-checking regime, particularly within India's IFCN network. Such initiatives, under the guise of promoting factual accuracy, can potentially be used to suppress dissenting voices and narratives that do not align with their ideological stance. This creates an imbalance in the information ecosystem, where certain viewpoints are systematically amplified while others are marginalized.

In September 2023, a coalition of 22 groups, including several prominent left-wing organizations, announced a commitment to fund local media publications with more than $500 million over the next five years. This coalition, named “Press Forward,” comprises many groups with a left-wing bias based on their funding and initiatives. A notable member of this alliance is Democracy Fund, an organization run by left-wing billionaire Pierre Omidyar.

The activities of Democracy Fund, as revealed through tax documents obtained by journalist Lee Fang, include providing a $130,000 grant to the Center for Internet Security. This grant was reportedly used to fund a “portal” that played a role in flagging and censoring social media content labeled as “misinformation” during the 2020 election. Such actions raise critical questions about the role of these funded entities in influencing public discourse, particularly through the control and censorship of information.

Omidyar’s Beneficiary Forbidden Story and Its Tentacles

The network of support and affiliations surrounding Forbidden Stories (FS), a beneficiary of Omidyar Network funding, is a matter of concern, particularly regarding its implications on the media landscape and political narratives in India.

Forbidden Stories, in addition to receiving support from the Omidyar Group, is also funded by George Soros’ Open Society Foundations (OSF) and the Wellspring Philanthropic Fund. The involvement of OSF, known for its critical stance towards the Indian Government, is particularly significant. This relationship points to a pattern where FS is supported by donors who have a history of opposing certain government policies and ideologies, especially in nations like India. The inclusion of the Wellspring Philanthropic Fund, shrouded in secrecy, adds another layer of opacity to the funding and operations of FS, raising questions about the agenda and motivations behind its initiatives.

FS had previously showcased an endorsement by Fabrice Afri, the Head of Investigations at Mediapart, on its website. Mediapart, a French leftist organization, has been actively involved in propagating controversial narratives about the Rafale deal, a matter of significant political discourse in India. The removal of the “The support us” page from the FS website does little to dispel the concerns about its connections and the influence of its donor network on its reporting and activities.

In July 2021, the leftist news portal Wire published an 'explosive story' involving allegations of spying with the Pegasus spyware. This story, fed to The Wire and its partners, originated from two organizations with questionable credibility: Amnesty International and Forbidden Stories. The involvement of FS in disseminating this information, alongside Amnesty International, raises critical questions about the objectivity and reliability of the information they provide. It also suggests a concerted effort to influence public opinion and political narratives in India, potentially in a direction that aligns with the ideological preferences of its funders.

In May 2022, a significant development occurred when the Central Bureau of Investigation (CBI) named the promoters of the NGO Omidyar Network, along with several other individuals, including government officials, in an FCRA (Foreign Contribution Regulation Act) bribery scandal case. This accusation came in the wake of the CBI filing an FIR (First Information Report) related to a national FCRA funding scam. Reports suggest that the promoters of the Omidyar Network were allegedly involved in bribing officials to secure FCRA licenses. Additionally, it was revealed that 6 to 8 more networks were under the CBI's scanner for similar allegations. This incident casts a shadow on the integrity of the Omidyar Network and its operations in India, raising questions about the legality and ethics of their methods to influence and operate within the country.

Even before this incident, in September 2021, the Ministry of Home Affairs had placed the Omidyar Network under the FCRA watchlist. This action by a governmental body indicates a growing concern about the activities of the Omidyar Network in India, particularly in relation to foreign funding and its influence on domestic affairs.

The overarching strategy of the Omidyar Group has been a topic of controversy. It appears that their investments were strategically directed towards organizations and efforts aimed at destabilizing governments and regimes that did not conform to their 'liberal worldview.' By bankrolling news organizations, entities, movies, and other mediums, the Omidyar Network sought to construct an alternative narrative and challenge the legitimacy of incumbent governments that they deemed unfavorable. This approach reveals a pattern of using their influence to shape political landscapes in ways that serve their interests.

Moreover, the organizations funded by Omidyar have often been cloaked as non-profit and ideologically independent entities. However, the unfolding events and revelations suggest that these organizations might have been instrumental in pursuing a vested agenda. The goal, it seems, was to establish pliant governments in host countries that align with the Omidyar Group's ideological preferences. Such actions, if true, are not only ethically questionable but also potentially harmful to the sovereignty and democratic processes of the countries targeted, including India.

In conclusion, the activities of the Omidyar Network in India, as unfolded through various investigations and reports, indicate a complex and concerning pattern of behavior. The allegations of unethical practices, attempts to influence political narratives, and the strategic funding of certain organizations paint a picture of an entity whose actions have been far from neutral and philanthropic. This raises important questions about the role of foreign entities in domestic affairs and the need for stringent measures to ensure transparency and accountability in their operations.