The Company failed to found a colony on Madagascar but established ports on the nearby islands of Bourbon and Île-de-France (today's La Réunion and Mauritius). By 1719, it had established itself in India but was near bankruptcy. In the same year it was combined under John Law with other French trading companies to form the Compagnie Perpétuelle des Indes. It resumed independence in 1723.
With the decline of the Mogul Empire, the French decided to intervene in Indian political affairs to protect their interests, notably by forging alliances with local rulers in south India. From 1741 the French under Joseph François Dupleix pursued an aggressive policy against both the Indians and the English until they ultimately were defeated by Robert Clive.