Swiggy Proposes 49.5 Percent Foreign Ownership Cap to Pursue IOCC Status

Swiggy's board has approved a proposal to cap the company's aggregate foreign ownership at 49.5 percent on a fully diluted basis as it continues efforts to qualify as an Indian-owned-and-controlled company (IOCC). The proposal will be presented to shareholders for approval through a special resolution at the company's 13th Annual General Meeting (AGM) scheduled for August 18, according to a regulatory filing.

The move is significant because obtaining IOCC status would allow Swiggy to directly own and sell inventory through its quick commerce platform Instamart. Industry observers believe this could help the company gain greater control over its supply chain and improve operational efficiencies.

The development comes as competition intensifies in India's quick commerce market, where companies are exploring different operating models to improve profitability while scaling rapidly. Rival Blinkit, owned by Eternal, currently operates an inventory-led model.

Swiggy has been pursuing IOCC status for some time. In May, the company was unable to secure the required shareholder approval to amend its Articles of Association (AoA), a step that was necessary to support its qualification as an Indian-owned-and-controlled company.

Along with the foreign ownership cap proposal, Swiggy's board has approved amendments to its Articles of Association to align with Foreign Exchange Management Act (FEMA) regulations. The company has also proposed reclassifying its authorised preference share capital into authorised equity share capital, subject to shareholder approval.

According to the regulatory filing, "As part of the company's broader endeavour to qualify as an Indian owned and controlled company (IOCC) under the applicable foreign exchange laws, the company proposes to amend its AoA."

The proposed changes include the removal of certain existing individual and institutional nomination rights, the introduction and revision of nomination rights for specified resident individuals, clarification of conditions governing the exercise and termination of those rights, and related amendments to relevant provisions within the Articles of Association.

The move highlights the growing importance of supply chain ownership and operational control in quick commerce, as platforms seek new ways to improve margins while competing for market share in one of India's fastest-growing consumer segments.