Two months ago, Swiggy asked its shareholders for a yes and got a no instead, falling just short of the votes needed to change its own rulebook. This week, the company went back for a second attempt, and the stakes this time are bigger than a paperwork tweak.
Swiggy's board has approved a proposal to cap the company's aggregate foreign ownership at 49.5% on a fully diluted basis, a move aimed squarely at qualifying as an Indian Owned and Controlled Company, or IOCC, under India's foreign exchange rules. The proposal now heads to shareholders for a special resolution vote at the company's 13th AGM on August 18.
The last attempt in May fell short, pulling in 72.36% approval against the 75% threshold required. What makes this round different is that Swiggy's foreign shareholding had already slipped to roughly 49.76% on its own by early July, inching the company closer to the line without needing a vote at all.
Why chase this label so hard? IOCC status would let Swiggy directly own and sell inventory through Instamart, its quick commerce arm, instead of running it purely as a marketplace. That shift matters because rival Blinkit, owned by Eternal, already operates on an inventory-led model, one widely seen as offering tighter control over margins and supply chains in the brutal quick commerce race. Eternal itself capped its foreign ownership at 49.5% back in April 2025 to earn the same status, and fintech major Paytm made a similar move earlier this year.
Alongside the ownership cap, Swiggy's board also cleared changes to its Articles of Association to align with FEMA norms, along with a proposal to convert its authorised preference share capital into equity share capital. None of it guarantees a smoother outcome this time, but it does show a company willing to try the same door twice, hoping momentum finishes what math started.
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