Swiggy Adopts Inventory Model Following Indian Ownership Status
Food delivery giant Swiggy has secured shareholder approval to become an Indian-owned and controlled company, paving the way for its Instamart service to adopt an inventory-led model.
Swiggy has officially transitioned to an Indian-owned and controlled company (IOCC) after its shareholders approved capping foreign ownership at 49.5%. This regulatory shift unlocks a significant change in business strategy for its quick commerce arm, Swiggy Instamart.
The shareholder vote, exceeding 99.9% approval at the company's annual general meeting, grants Swiggy greater operational flexibility. The primary aim is to bolster Instamart's capabilities by allowing it to directly procure products from brands.
This pivot to an inventory-led model is expected to give Instamart enhanced control over product assortment, pricing, inventory levels, and fulfillment processes. By negotiating directly with manufacturers, Swiggy aims to improve gross margins and prioritize high-demand items.
However, the new model introduces operational complexities, including managing procurement, working capital, and inventory risks like wastage. Success will depend heavily on execution. This strategic move also targets Instamart's substantial losses, which reached ₹651 crore in Q1 FY27, as Swiggy navigates the capital-intensive quick commerce landscape toward profitability.