Eternal, the parent company of Zomato and Blinkit, is planning to draw a line in the sand when it comes to foreign ownership. In a board meeting held earlier today, the company greenlit a proposal to limit total foreign shareholding to 49.5%, on a fully diluted basis. This includes foreign direct investors (FDI), foreign portfolio investors (FPIs), and even non-resident Indians (NRIs).
The next step? Getting the green signal from shareholders.
As of the end of March 2025, foreign entities held 44.36% of Eternal—down from 47.30% just three months prior. Some of the international heavyweights on the cap table include the Kuwait Investment Authority, Antfin, Vanguard, and the Singapore government.
Meanwhile, Indian investors have been quietly gaining ground. Domestic ownership rose to 23.56% by the end of March, up from 20.54% in December. Indian mutual funds like Mirae Asset, HDFC, Axis, ICICI, and Kotak are all on board.
For context: under India’s rules, FPI ownership is usually capped at 24%, while NRIs are allowed up to 10% of a company’s paid-up capital. But Eternal’s proposed cap of 49.5% is more of a preemptive strategic move—likely driven by shifting political winds rather than legal thresholds.
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So why now?
It seems to be a response to signals from the government. Commerce Minister Piyush Goyal, while speaking at the Startup Mahakumbh, took subtle jabs at Indian startups overly reliant on foreign money—particularly in the fast-growing space of quick commerce and grocery delivery.
Referring to Zepto’s upcoming IPO plans, Goyal remarked:
“I have no issue with instant grocery delivery companies going public—even if they’re valued in billions. I just wish more Indian investors were part of that journey, instead of watching foreigners scoop up our homegrown startups.”
That sentiment appears to be resonating. Zepto, Flipkart, and Blinkit—three giants in the quick commerce race—all have sizable foreign ownership. While Flipkart is controlled by Walmart, Zepto counts General Catalyst, Y-Combinator, and Lightspeed among its key backers.
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Eternal, by proactively limiting foreign control, seems to be positioning itself as more aligned with India’s economic nationalism. As the IPO spotlight intensifies in this sector, the message from the top is clear: more desi capital, less foreign dominance.
