Swiggy Ltd. has moved a step closer to qualifying as an Indian Owned and Controlled Company (IOCC), with its aggregate foreign investment declining to approximately 49.76 per cent of its total paid-up equity share capital on a fully diluted basis as of July 6. The disclosure, filed with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) under SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, marks a significant milestone in the food delivery and quick commerce company's long-term strategy to align its ownership structure with India's foreign investment regulations.

According to the regulatory filing, the 49.76 per cent figure includes foreign portfolio investments, foreign direct investments and other indirect foreign holdings combined, based on data provided by the designated depository. However, Company Secretary and Compliance Officer Cauveri Sriram clarified that the reduction in foreign shareholding alone does not automatically change Swiggy's ownership or control status. The company said the development has no immediate impact on its share capital, management, voting rights, business operations or shareholder rights, adding that any material changes will be disclosed in accordance with applicable laws.

Swiggy had first outlined its intention to move towards IOCC classification in May, when it proposed amendments to its board nomination framework. The company explained that the governance changes formed part of a broader plan to eventually satisfy the conditions required under the Foreign Exchange Management Act (FEMA). Under existing rules, a company can be classified as an Indian Owned and Controlled Company only if more than 50 per cent of its ownership is held by resident Indian shareholders and effective control rests with resident Indian citizens or eligible Indian entities. Unlike several Indian companies with identifiable promoter groups, Swiggy has said it lacks a dominant domestic shareholder capable of ensuring Indian control, making governance reforms a key part of its strategy.

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The company has also maintained that board restructuring alone will not be sufficient to secure IOCC status. Swiggy has stated that the transition will require shareholder approvals, regulatory clearances and additional corporate actions before any formal reclassification can take place. The company is therefore pursuing a combination of majority domestic ownership and a governance framework designed to ensure effective Indian control, in line with FEMA requirements.

Achieving IOCC status could provide Swiggy with greater operational flexibility under India's foreign investment regulations, particularly in sectors where restrictions apply to foreign-funded e-commerce businesses dealing with inventory ownership. The development is also strategically important as the company continues to compete aggressively in the food delivery and quick commerce segments. While the decline in foreign shareholding below the 50 per cent threshold signals meaningful progress toward its objective, Swiggy has not indicated a timeline for completing the remaining regulatory and governance requirements needed to obtain formal Indian Owned and Controlled Company classification.

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