In a filing with the exchanges, the foodtech major said that it received 72.36% of the votes in favour of the amendment, falling short of the 75% threshold by 2.65%
This follows the company last month issuing a postal ballot notice, seeking shareholder approval for amendments to its AoAs and rejig its board nomination framework
The foodtech major was looking to amend its AoAs to clinch the IOCC tag, which would enable its quick commerce vertical Instamart transition to an “inventory ownership” model
Shareholders have shot down foodtech major Swiggy’s bid to become an Indian-owned and controlled company (IOCC).
The foodtech giant failed to secure the necessary votes to amend its articles of association (AoAs) and rejig its board nomination framework. In a filing with the exchanges, the company said that it received 72.36% of the votes in favour of the amendment, falling short of the 75% threshold by 2.65%.
This is the first time that shareholders have voted down a resolution since the foodtech giant went public in November 2024.
This follows the company last month issuing a postal ballot notice, seeking shareholder approval for amendments to its AoAs and the appointment of Renan De Castro Alves Pinto as a non-executive nominee director. The remote e-voting commenced on April 21 and closed on May 20.
Last week, Swiggy
filed a clarification with the bourses, saying that the proposed framework was aimed at becoming an IOCC under the country’s foreign exchange laws. 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.
The foodtech major was eyeing the IOCC tag as it would unlock new opportunities for the company in the quick commerce space. Just like its rival Eternal, the push was aimed at helping its quick commerce vertical Instamart transition to an “inventory ownership” model from the current marketplace model led by third-party sellers.
The transition would have allowed it to procure directly from brands and sell them on its platform, replacing commission revenue with net sales. This would have meant higher margins, better control over the supply chain, including warehousing and logistics, and better customer service.
While the plans have been dashed for now, Swiggy had been preparing for the inventory pivot for some time now. In May last year, it rolled out a separate Instamart app, signalling that the quick commerce venture needed its own brand identity. Afterwards in September, it also hived off its quick commerce vertical into a step-down subsidiary to prepare for the potential pivot.
Later during the company’s Q2 FY26 earnings call in October 2025, CEO Sriharsha Majety said that Instamart would eventually move to an inventory-led model.
On the financial front, Swiggy managed to narrow its consolidated net loss by 26% to ₹800 Cr in Q4 FY26 from ₹1,081 Cr in the same quarter last year. Meanwhile, revenue from operations zoomed 44.7% to ₹6,383 Cr from ₹4,410 Cr in the year-ago period.
Shares of the company ended yesterday’s trading session 2.34% lower at ₹250.85 on the BSE.
Source: Inc42 - Startups
