Swiggy's Foreign Shareholding Drops Below 50 per cent; Seeks Indian Owned and Controlled Company Status

New Delhi, July 7: Foreign investment in Swiggy dropped below the 50 per cent mark to 49.76 per cent of its total paid-up equity share capital on a fully diluted basis, the food delivery and quick commerce firm said in a regulatory filing on Tuesday.

The aggregate foreign investment in Swiggy includes foreign portfolio investment, foreign direct investment and other indirect foreign investment.

The shift assumed significance as the food delivery and quick commerce firm has been trying to qualify as an Indian owned and controlled company (IOCC).

In May, Swiggy failed to secure the requisite shareholder approval to alter its Articles of Association, with which it had aimed to qualify as an IOCC.

Swiggy clarified that the dip in foreign shareholding does not result in any change to its ownership or control status, nor does it have any impact on the share capital, management, business operations, voting rights or rights attached to the equity shares of the company.

“Any material development in this regard will be disclosed in accordance with applicable law,” it stated in the filing.

Achieving an IOCC status would allow Swiggy’s quick commerce arm, Instamart, to own inventory directly, which may improve margins and supply chain control.