Swiggy foreign shareholding falls under 50%; Indian ownership status remains in focus

Foreign investment in Swiggy fell below the 50% mark to 49.76% of its total paid-up equity share capital on a fully diluted basis, the food delivery and quick commerce firm said in a regulatory filing on Tuesday (July 7).

The aggregate foreign investment in Swiggy includes foreign portfolio investment, foreign direct investment and other indirect foreign investment.

The development is significant as the food delivery and quick commerce firm has been trying to qualify as an Indian owned and controlled company (IOCC).

In May, Swiggy failed to secure the requisite shareholder approval to amend its Articles of Association, through which it had sought to qualify as an IOCC.

Swiggy clarified that the decline in foreign shareholding does not result in any change to its ownership or control status, nor does it have any impact on the company's share capital, management, business operations, voting rights or the rights attached to its equity shares.

"Any material development in this regard will be disclosed in accordance

with applicable law," the company said in the filing.

Achieving IOCC status would allow Swiggy's quick commerce arm, Instamart, to own inventory directly, which could improve margins and strengthen supply chain control.