News · Commerce & Consumer Brands

Swiggy caps foreign ownership, faces regulatory heat

By Startup Enthusiast · 29 June 2026

What they do

Swiggy operates food delivery and quick commerce platforms including Swiggy Instamart

Shareholders approved capping foreign ownership at 49.5% to qualify as an Indian-owned company

Regulators in Karnataka and Maharashtra issued notices over food safety and gig worker laws

Swiggy shareholders approved capping foreign ownership at 49.5% and amending its AoA to qualify as an IOCC under FEMA.
Over 99.9% of shareholders voted for the two proposals at the 13th annual general meeting.
IOCC status lets Swiggy Instamart adopt an inventory-led model, buying products directly from brands.
The inventory-led model gives Instamart more control over product assortment, pricing, inventory availability and fulfilment.
The pivot may improve Swiggy's gross margins through direct brand negotiations and prioritising high-demand products.
It also brings new operational responsibilities: procurement, working capital, stock risk and potential wastage.
Swiggy Instamart's losses stood at ₹651 Cr in Q1 FY27.

IAMAI, Eternal Ltd, Zepto, Swiggy, Urban Company and Valmo Transportation filed a petition in Karnataka High Court challenging the Karnataka Platform Based Gig Workers Act, 2025 and its Rules.
The petition seeks to quash notices directing platform companies to set up Internal Dispute Resolution Committees, pay welfare fees and furnish information.
It also seeks to strike down the Rules, the Welfare Board notification, and the Government Order dated February 12, 2026.
The petition argues the Act and Rules are arbitrary, violate Article 14 of the Constitution and infringe other fundamental rights.

Swiggy operates food delivery and quick commerce platforms including Swiggy Instamart.
Instamart delivers groceries and household items in minutes.
Swiggy also runs a food ordering and delivery platform called Toing.
The company makes money through commissions, delivery fees, and advertising.
Swiggy Instamart's losses were ₹651 Cr in Q1 FY27.
The company is pivoting to an inventory-led model to improve margins.