Swiggy shareholders greenlight proposal for Indian-owned company status

Swiggy on Tuesday received shareholders’ approval to cap its aggregate foreign ownership at 49.5%, months after they rejected a similar proposal in May, paving the way for the company to qualify as an Indian-owned and controlled company (IOCC).

The shareholders approved a special resolution in this regard, Swiggy informed in a regulatory filing on Tuesday.

The Indian owned and controlled company status would allow Swiggy to directly own and sell inventory through its quick commerce brand Instamart, a move expected to improve margins and strengthen supply chain control.

Rival Blinkit, owned by Eternal, follows an inventory-led model.

The food delivery and quick commerce firm has been trying to qualify as an IOCC. In May, Swiggy failed to secure the requisite shareholder approval to alter its Articles of Association, through which it had aimed to qualify as an IOCC.

Besides approving the foreign ownership cap proposal, Swiggy’s shareholders also approved an alteration to the Articles of Association (AoA) to align with India’s FEMA (Foreign Exchange Management Act) regulations.

Under current FEMA rules, a company can qualify as Indian-owned and controlled only if both ownership and control rest with resident Indian citizens or eligible Indian entities, including through a board composition and nomination framework that supports domestic control over the board.

Separately, Swiggy announced expanded leadership roles for three senior executives at its Instamart and Food Marketplace businesses.

Himavant Kurnala has been appointed Chief Growth and Product Officer, Instamart, Nitesh Garg the Chief Technology Officer, Instamart, and Saurav Goyal the Chief Operating Officer, Food Marketplace.

This follows a series of recent leadership appointments, including Nandita Sinha as Chief Executive Officer, Instamart, and Gautam Swaroop as Chief Business Officer, Instamart.

Earlier this year, Swapnil Bajpai was elevated as the Chief Executive Officer of Swiggy's Dineout and Scenes business. Sidharth Bhakoo continues as the Chief Business Officer, Swiggy Food Marketplace, Swiggy said.

Kurnala, Chief Growth and Product Officer, Instamart, has led the quick commerce platform's product charter since 2024, later expanding his remit to include growth and brand marketing.

Garg, Chief Technology Officer, Instamart, has spent over seven years at Swiggy, most recently as Senior Vice President leading engineering for Instamart and New Initiatives.

Goyal, Chief Operating Officer, Food Marketplace, has held a wide range of leadership roles since joining Swiggy in 2020, spanning business finance for food, Instamart and, more recently, driver and delivery product and operations.