Swiggy’s Foreign Ownership and Transition to IOCC

Swiggy has successfully gained shareholder approval to establish a limit on the total foreign ownership of the company at 49.5%. This decision was made during its 13th Annual General Meeting (AGM) on August 18, 2026, marking a significant step in its transition to being an Indian-owned and controlled company (IOCC). This approval follows the news that Swiggy’s domestic ownership surpassed 50% in July, with foreign stakes recorded at 49.76%. The current figures include foreign direct investment (FDI), foreign portfolio investment (FPI), and other indirect foreign investments.

Importance of IOCC Status

Swiggy had previously sought shareholder backing for its IOCC transformation in May, but the proposal did not receive the necessary votes. The IOCC classification is especially crucial for Swiggy’s rapid commerce branch, Instamart. Upon completion of this transition, Instamart may begin to adopt an inventory-led model, similar to that of Eternal’s Blinkit.

Transition to the Inventory Model

In an inventory model, Instamart would be able to directly purchase and own the products sold through its platform, rather than merely acting as a marketplace that connects buyers and sellers. This approach would also enable Swiggy to account for the total value of sales as revenue, rather than just earning commissions from sellers. Eternal adopted a similar structure for Blinkit after it reduced its foreign ownership below the 50% mark, facilitating a shift to the inventory model and altering how revenue was reported.

Financial Performance and Executive Restructuring

In the first quarter of FY27, Swiggy announced a 7% year-on-year increase in its operating revenue, amounting to Rs 6,812 crore, compared to Rs 4,961 crore during the same period in FY25. Additionally, the company succeeded in narrowing its losses by 34%, bringing them down to Rs 791 crore during this timeframe.

Earlier in the day, Swiggy also expanded the responsibilities of three senior executives within its Instamart and Food Marketplace divisions. Himavant Kurnala was appointed as the Chief Growth and Product Officer at Instamart, while Nitesh Garg has taken on the role of Chief Technology Officer (CTO). Saurav Goyal has assumed the position of Chief Operating Officer (COO) of the Food Marketplace.

Swiggy’s shares closed at Rs 274 on Thursday, leading to a market capitalization of Rs 75,633 crore ($7.96 billion).