Swiggy clarifies FSSAI order on Toing, says it was licence update, not food safety issue

Food delivery platform Swiggy on Friday said the Food Safety and Standards Authority of India (FSSAI) had issued a prohibition order concerning its standalone budget food ordering and delivery platform, Toing. The company said that the order was issued for updating licence particulars and was unrelated to food safety issues.

In a post-market filing with the BSE, Swiggy said it had received a prohibition order from the Food Safety and Standards Authority of India (FSSAI), dated 6 July 2026.

The company said it addressed the issues cited in the order and was subsequently issued a revised FSSAI licence on 9 July 2026.

According to Swiggy, the order was issued by the Designated Officer, Karnataka, of the Food Safety and Standards Authority of India.

The company stated that the matter relates to certain observations by FSSAI regarding the updation of licence particulars for the 'Toing' platform, which have since been addressed by way of a modification to the FSSAI licence issued on 9 July 2026.

Swiggy said the order is not expected to have any material impact on its business operations or financial performance, adding that it does not involve any financial penalty.

It mentioned the disclosure was delayed because it was assessing the order and deciding on the appropriate course of action after receiving it.

Unlike Swiggy's flagship platform, Toing is aimed at budget-conscious customers, offering a streamlined food ordering experience with a carefully curated selection of restaurant partners.

Meanwhile, Swiggy's shares ended Friday's trading session 2.78% lower at ₹273.10

Swiggy's foreign shareholding falls below 50%

In other news, Swiggy on Tuesday said its total foreign investment had fallen below the 50% threshold, accounting for 49.76% of its fully diluted paid-up equity share capital, according to a regulatory filing, PTI reported.

The company's foreign shareholding comprises foreign direct investment (FDI), foreign portfolio investment (FPI), and other forms of indirect foreign investment.

The development is significant, as Swiggy has been seeking recognition as an Indian-Owned and Controlled Company (IOCC).

In May, however, the company failed to obtain the required shareholder approval to amend its Articles of Association, a key step towards achieving IOCC status.

Swiggy clarified that the decline in foreign shareholding does not alter the company's ownership or control status and has no impact on its share capital, management, business operations, voting rights, or the rights attached to its equity shares.

“Any material development in this regard will be disclosed in accordance with applicable law,” it mentioned in the filing.

Securing Indian Owned and Controlled Company (IOCC) status would enable Swiggy's quick commerce platform, Instamart, to directly own inventory, a move that could strengthen supply chain control and potentially improve profit margins.