Why Are Mutual Funds Increasing Their Stakes in Swiggy?

Something interesting happened in mutual fund portfolios in July 2026.

Several mutual fund schemes sharply increased their Swiggy holdings in July compared with June. Some funds more than doubled their positions, while a few funds that had not reported Swiggy holdings in June also entered with sizeable positions.

The timing is interesting too.

Swiggy was moving closer to becoming an Indian-Owned and Controlled Company, or IOCC, a change that could directly affect how Instamart operates. At the same time, Instamart was growing rapidly while its unit economics were improving.

So, what are mutual funds seeing in Swiggy? Let’s understand.

Mutual Funds That Increased Their Stake in Swiggy

The table below includes mutual funds that already held Swiggy in June and increased their holdings by more than 70% month-on-month in July 2026.

Source: Trendlyne

Some of these increases were substantial.

Kotak ELSS Tax Saver Fund’s Swiggy holding value increased from around ₹13 crore in June to ₹61 crore in July. Nippon India Value Fund’s holding value rose from around ₹45 crore to ₹171 crore, while ICICI Prudential India Opportunities Fund’s position increased from around ₹105 crore to ₹307 crore.

New Mutual Fund Positions in Swiggy

July was not only about existing funds increasing their positions. Several schemes that had not reported Swiggy holdings in June appeared with fresh positions in July.

Some of the larger new positions were:

• SBI Midcap Fund: ₹284.86 crore
• SBI Multicap Fund: ₹256.37 crore
• Axis Large & Mid Cap Fund: ₹137.46 crore
• Nippon India Small Cap Fund: ₹127.41 crore
• Axis ELSS Tax Saver Fund: ₹96.30 crore
• Axis Multicap Fund: ₹76.05 crore
• ICICI Prudential Active Momentum Fund: ₹35.48 crore
• Nippon India Vision Large & Mid Cap Fund: ₹34.18 crore
• Tata India Consumer Fund: ₹33.33 crore

So, July showed two clear trends. Some existing mutual funds sharply increased their exposure to Swiggy, while several others entered the stock with fresh positions.

But the bigger question is: why are mutual funds increasing their investment in Swiggy, and what has changed in the business to attract them?

The First Trigger: Swiggy's Move Towards IOCC Status

One of the most important developments around Swiggy is its plan to become an Indian-Owned and Controlled Company, or IOCC.

By July 6, 2026, foreign ownership in Swiggy had fallen to 49.76%, while domestic investors collectively owned 50.24%.

To qualify as an IOCC, Indian investors must own more than 50% of the company, and Indians must also have control over how the company is managed and run.

This is where the increase in domestic mutual fund holdings becomes relevant.

Mutual funds such as SBI MF, ICICI Prudential AMC and HDFC MF form part of Swiggy's domestic investor base. Rising holdings by Indian mutual funds therefore supported the broader shift towards higher domestic ownership.

However, mutual fund buying alone did not make Swiggy eligible for IOCC status. Foreign investors were also reducing their holdings. What mutual fund buying did was contribute to Swiggy's growing domestic ownership base at a time when the company was working towards this structure.

Swiggy's Q1 FY27 shareholder letter said that its domestic ownership crossed 50% for the first time on July 1, "paving the path" for its IOCC journey.

Swiggy's board then proposed a 49.5% cap on aggregate foreign ownership on July 23. Shareholders approved the proposal on August 18, with 99.99% of votes cast in favour.

But why was Swiggy so focused on becoming Indian-owned?

The answer leads directly to Instamart.

Why IOCC Status Matters for Instamart

Instamart largely operates under a marketplace model, where Swiggy connects customers with sellers rather than directly owning the products being sold.

IOCC status could allow Instamart to directly own and sell inventory while continuing its marketplace business.

Blinkit has already moved to an inventory-led model after its parent, Eternal, became an IOCC. In Q4 FY26, Blinkit reported positive adjusted EBITDA of ₹37 crore. However, inventory ownership alone cannot be credited for its profitability improvement.

For Swiggy, direct inventory ownership could give Instamart greater control over sourcing, product mix and stock availability. This could help it stock more fast-selling products, negotiate better with suppliers and ultimately improve margins and profitability.

Swiggy itself has said that inventory ownership could improve sourcing efficiencies and support better profitability over time.

For a business already moving closer to contribution break-even, even a small improvement in margins can matter.

So, the IOCC move is much more than an ownership change. It could change how Instamart operates and potentially improve how much money it makes on each order.

The Second Trigger: Instamart's Growth Is Starting to Look Different

Instamart's growth remains strong.

In Q1 FY27, Instamart’s Gross Order Value, or GOV, which is the total value of all orders placed on the platform, grew 39.8% year-on-year to ₹7,907 crore. Swiggy ended the quarter with 1,171 dark stores across 131 cities.

But the more interesting change is not simply its growth.

The economics behind this growth are also starting to improve.

The business is still loss-making at the EBITDA level, with an adjusted EBITDA loss of ₹778 crore during the quarter. However, that loss reduced by ₹80 crore sequentially.

That changes the Instamart story.

Earlier, the focus was mainly on how quickly Swiggy could expand its quick-commerce business.

Now the question is: can Instamart continue growing while making each order and dark store more efficient?

There are already some positive signs. More than 45% of Instamart stores were earning more than their direct operating costs in Q1 FY27, while 5 of its 7 biggest cities had reached the same stage.

At the same time, Instamart was still growing at nearly 40% year-on-year. Swiggy’s move towards IOCC status could further improve Instamart’s control over inventory and margins.

Together, these changes help explain why mutual funds may have become more interested in Swiggy.

What This Adds Up To

The July data shows a clear rise in mutual fund interest in Swiggy. Some existing schemes increased their holdings by more than 100% or even 200%, while funds such as SBI Midcap Fund and SBI Multicap Fund entered with sizeable fresh positions.

This buying came at a time when Swiggy's ownership structure was changing. Higher domestic ownership, including participation from Indian mutual funds, supported Swiggy's move towards IOCC status.

That matters because IOCC status could give Instamart more control over inventory, sourcing and pricing at a time when the business is already growing rapidly and improving its economics.

For investors who want exposure to the Swiggy story but do not actively track stocks every day, mutual funds can offer a simpler and more diversified route. Instead of constantly following company news, deciding when to enter or exit a stock, and managing individual positions, investors can rely on a professional fund manager to make these decisions as part of a diversified portfolio.

Funds such as SBI Multicap Fund, SBI Midcap Fund, Nippon India Value Fund and ICICI Prudential India Opportunities Fund already have exposure to Swiggy.

The idea, however, is not to choose a mutual fund only because it owns Swiggy. Investors should consider the fund's overall portfolio, strategy, risk level and suitability. For investors who prefer professional management and diversification, such funds can provide exposure to the Swiggy opportunity without the need to actively manage a single stock.