Is Swiggy now an Indian-owned and controlled company?
What's the story
Swiggy, the popular food delivery and quick commerce platform, has announced a major shift in its ownership structure. As of July 6, the company's foreign shareholding has dropped to 49.76% of its paid-up equity capital on a fully diluted basis. This marks a significant milestone for Swiggy, as its foreign shareholding has dipped below 50% for the first time in the company's recent history.
Operational implications
Resolution to classify Swiggy as IOCC failed in May
The reduction in foreign shareholding is a major development for Swiggy, especially after its shareholders failed to pass a resolution in May. The resolution was aimed at classifying the company as an Indian-owned and controlled company (IOCC). Had it been passed, this would have allowed Swiggy's quick commerce arm Instamart to own inventory directly, thus improving margins and supply chain control.
Ownership clarification
Potential reopening of IOCC path for Swiggy
In light of the recent change, Swiggy has clarified that the drop in foreign shareholding does not automatically alter its ownership or control status. The company said it would disclose any material development as required by law. With foreign holding now organically below 50%, the IOCC path may reopen for Swiggy, potentially paving the way for new business strategies and operational changes.