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Swiggy approval clears way for Instamart inventory-owned model
Swiggy reduced its foreign holding cap to 49.5% from 50.0% in June, after foreign investors surrendered board nomination rights tied to Swiggy becoming Indian-owned and controlled.
Swiggy gained about 3% over two trading sessions after shareholders approved a resolution that enables the company to be treated as an Indian-owned and controlled company at its annual general meeting on Tuesday, according to LiveMint Markets.
The change allows Swiggy’s quick commerce arm Instamart to operate an inventory-owned model alongside its online marketplace for third-party sellers. To qualify, foreign ownership must be below 50% and the majority of the board representation must be resident Indian individuals.
Swiggy said it cut the foreign holding limit to 49.5% from 50.02% in June, and foreign investors such as SoftBank surrendered board nomination rights, keeping board representation Indian. The shift also places a spotlight on Instamart’s implied valuation as it begins the inventory-owned operating approach.
Jefferies India said that capping foreign holdings could trigger passive outflows from foreign funds that track MSCI and FTSE indices, which it called a short-term negative. The article also cites Instamart’s June-quarter figures, including a 13% year-on-year and 9% sequential decline in loss to ₹778 crore, with net order value rising 39% year-on-year to ₹5,817 crore, and it notes that the EBITDA margin as a share of net order value could improve by 80 to 100 basis points as scale and inventory ownership take effect.
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