Swiggy shareholders approve 49.5% foreign ownership cap

Swiggy shareholders have overwhelmingly approved proposals to cap aggregate foreign ownership at 49.5% and amend the company’s Articles of Association. The move, which received over 93% backing, aims to allow the foodtech company to be classified as an Indian-owned and controlled company (IOCC) under the Foreign Exchange Management Act (FEMA).

This structural change is intended to facilitate a transition for Swiggy’s quick commerce arm, Instamart, from a marketplace model to an inventory-led model. By directly procuring products from brands, Instamart can gain greater control over its supply chain and potentially improve profitability. This shift follows a previous attempt in May that failed to secure the required 75% supermajority.

The governance changes also include provisions for co-founders Sriharsha Majety and Phani Kishan Addepalli to nominate directors to the board, ensuring majority representation for Indian shareholders. Following this vote, Swiggy can approach the Reserve Bank of India to establish the proposed foreign shareholding ceiling.