Synopsis
Swiggy has announced upcoming adjustments to its board nomination policies as part of its strategy to establish itself as an Indian owned and controlled company. This initiative is designed to align with foreign exchange compliance requirements.Listen to this article in summarized format
Swiggy made these comments to clarify that its proposed board nomination framework is part of a broader effort to qualify as an IOCC, addressing queries raised by institutional investors about the amendments.
Under current Foreign Exchange Management Act (FEMA) rules, a company can qualify as an IOCC only if both ownership and control rest with resident Indian citizens or eligible Indian entities, including through a board composition and nomination framework supporting domestic control.
Since Swiggy doesn’t have an Indian promoter group holding a substantial stake or board representation, it has proposed the amendments as part of its journey to become an IOCC. As of September last year, foreign investors held just under 60% of its shares.
The IOCC status would allow Swiggy’s quick commerce arm, Instamart, to operate with fewer restrictions under India’s FDI policies, which limit internationally funded ecommerce platforms from holding their own inventory.
Rival Blinkit made this transition in September last year after parent Eternal became an IOCC in April 2025, a shift that dramatically boosted its financials, as the company moved from recognising only commissions to recording the full value of sales. Eternal’s March quarter operating revenue grew threefold year-on-year to Rs 17,292 crore, while net profit rose 4.5 times to Rs 174 crore.
Swiggy, by contrast, reported a 45% year-on-year rise in operating revenue for the March quarter at Rs 6,383 crore, while narrowing its net loss by 26% on reduced cash burn and a one-time exceptional income.
