Over 99.9% of Swiggy’s shareholders voted to cap aggregate foreign ownership at 49.5% and amend its Articles of Association

Swiggy now gets the IOCC tag, enabling Instamart to transition to an inventory-led model that could improve profitability

The move has now passed after an earlier attempt to make Swiggy an IOCC in May failed

At Swiggy’s 13th Annual General Meeting (AGM), the foodtech giant’s shareholders voted to cap its aggregate foreign ownership at 49.5% and to tweak the company’s Articles of association (AoA) accordingly.

The board of directors had already approved the proposal last month as it was seeking to be classified as an Indian owned and controlled company (IOCC) under the Foreign Exchange Management Act (FEMA).

More than 99.9% of the shareholders have now voted in favour of these two proposals’ implementation.

This now enables Swiggy to rejig the business model of its quick commerce arm Instamart. While it currently serves as a marketplace that hosts seller entities, it can now adopt an inventory-led model and sell products after directly procuring them from brands.

Swiggy had earlier sought to achieve the IOCC tag in May this year. However, only around 72% of shareholders voted to go through with it at the time. Without getting the approval of at least 75% of the shareholders, the special resolution had failed at the time.

Eternal similarly had converted itself to an IOCC for similar reasons, which boosted growth and margins. Swiggy could be seeking similar results by following suit.

Instamart alone posted a net loss of ₹651 Cr in Q1 FY27, even as Swiggy’s company-wide consolidated net loss stood at ₹791 Cr. Hence, bringing its burn on quick commerce under control would significantly help Swiggy’s bottom line.