Swiggy Shareholders Cap Foreign Ownership at 49.5%
Swiggy's shareholders have voted to limit aggregate foreign ownership to 49.5%, enabling the foodtech company to potentially revise its quick commerce business model. The move aligns with the company's goal to be classified as Indian-owned and controlled.
Swiggy's shareholders have voted to cap aggregate foreign ownership in the company at 49.5%, a move designed to allow the foodtech giant to be classified as Indian-owned and controlled under the Foreign Exchange Management Act (FEMA).
The decision, which passed with over 99.9% of shareholder support at the company's 13th Annual General Meeting, also involves amendments to Swiggy's Articles of Association. The board of directors had previously approved the proposal last month.
This change is expected to allow Swiggy to restructure its quick commerce arm, Instamart. Currently operating as a marketplace, Instamart may transition to an inventory-led model, procuring products directly from brands for sale.
Swiggy's previous attempt to achieve Indian-owned status in May failed to secure the required 75% shareholder approval. Achieving this status mirrors actions taken by competitor Eternal, which reportedly saw improved growth and margins following a similar reclassification.
Instamart incurred a net loss of ₹651 crore in Q1 FY27, contributing to Swiggy's consolidated net loss of ₹791 crore. Controlling losses in its quick commerce operations could significantly improve the company's overall financial performance.