Swiggy shareholders approved a resolution to cap foreign ownership in the company at 49.5%, enabling it to qualify as an Indian-owned and controlled company (IOCC), the company announced on Tuesday. This decision follows a previous attempt in May that did not meet the required 75% shareholder approval threshold. The move allows Swiggy to restructure its quick commerce arm, Instamart, and potentially improve its financial performance, according to livemint.com.
At Swiggy’s 13th Annual General Meeting, over 99.9% of shareholders voted in favor of capping foreign investment and amending the Articles of Association accordingly, inc42.com reported. The board had approved the proposal last month as part of efforts to comply with India's Foreign Exchange Management Act (FEMA) rules. Under these rules, a company must have more than 50% domestic ownership and control to qualify as an IOCC. Swiggy’s foreign investment stood at 49.76% as of early July, just above the new cap.
The IOCC status will allow Swiggy to shift Instamart from a marketplace model hosting sellers to an inventory-led model, directly procuring products from brands. This change aims to reduce losses and improve margins, as Instamart posted a net loss of ₹651 crore in Q1 FY27, contributing significantly to Swiggy’s consolidated net loss of ₹791 crore. The move mirrors similar steps taken by other companies like Eternal, which saw growth and margin improvements after becoming IOCCs, inc42.com noted.
Swiggy’s shareholders approved the foreign ownership cap and related amendments during the AGM held on August 18, 2026, according to livemint.com. This approval positions Swiggy to implement strategic changes in its business model and comply with regulatory requirements.