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 addressed the issue, stating that the order was issued over the updating of licence particulars and was unrelated to food safety issues.
In a post-market filing with the BSE, said it had received a prohibition order from the Food Safety and Standards Authority of India (FSSAI), dated July 6, 2026.
The company said it had addressed the issues cited in the order and was subsequently issued a revised licence on July 9, 2026.
According to Swiggy, the order was issued by the Designated Officer, Karnataka, of the Food Safety and Standards Authority of India.
“This is to inform that Swiggy Ltd had received a Prohibition Order dated July 6, 2026, from the Food Safety and Standards Authority of India (FSSAI) in relation to the Company’s food ordering and delivery platform/application ”. The matter related to certain observations by FSSAI regarding updation of licence particulars and involved no food safety concerns,” the company stated.
It added, “The matter relates to certain observations by FSSAI regarding the updation of licence particulars in respect of the ‘Toing’ platform, which has since been addressed by way of modification of the FSSAI licence, issued on July 9, 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 per cent 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, as per PTI.
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.