Swiggy now an Indian entity as foreign investors sell stake, moves closer to IOCC status

Bengaluru: Food delivery and quick commerce platform Swiggy has become an Indian entity after foreign investment dropped to 49.76% as of July 6, the company said in an exchange filing.

The move is part of Swiggy’s effort to qualify as an Indian Owned and Controlled Company (IOCC) under FEMA rules. Achieving IOCC status would allow its quick commerce arm Instamart to hold inventory directly, instead of operating only as a marketplace — a shift experts say can improve unit economics in the competitive quick commerce sector.

Foreign ownership in Swiggy was just under 60% as of September 2024. Rival Zomato parent Eternal became an IOCC in April 2025 after capping foreign holding at 49.5%.

Swiggy noted the current foreign holding level does not yet change control or management, but any material update will be disclosed. Following the announcement, the company’s shares rose over 5%.