Foreign ownership in Swiggy goes below 50%

Foreign investment in Swiggy dropped 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.

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

The shift assumed significance 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 alter its Articles of Association, with which it had aimed to qualify as an IOCC.

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

"Any material development in this regard will be disclosed in accordance with applicable law," it stated in the filing.

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

Swiggy went public in November 2024 and since then the company’s shareholding structure has evolved with the foreign entity owners reducing their stake through selling their shares in the public.

Reacting to these developments, the share price of Swiggy rose by 7.21% to end at Rs 266.27.

The status of IOCC is not the case of Swiggy alone. Eternal, the parent company of the quick commerce business Blinkit also passed a board resolution capping the foreign ownership in the company to 49.5% in April 2025. This was done to achieve the IOCC status.

Fintech company Paytm had announced in April this year that it has become a majority Indian owned company.

(With inputs from PTI)