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

Food delivery platform Swiggy said on Friday that the Food Safety and Standards Authority of India (FSSAI) has issued a prohibitory order against independent budget food ordering and delivery platform Toing. The company said the order was made to update its license details and was unrelated to food safety issues.

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

The company said it addressed the issues mentioned in the order and subsequently obtained a revised FSSAI license on July 9, 2026.

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

The company stated that the matter relates to certain observations of the FSSAI regarding updating of license details for the ‘Toing’ platform and these observations have been addressed through the amendment to the FSSAI license issued on July 9, 2026.

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Swiggy added that the order is not expected to have any material impact on business operations or financial performance and does not involve any financial penalty.

He stated that the statement was delayed because he evaluated the order and decided on the appropriate course of action after receiving the order.

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Unlike Swiggy’s flagship platform, Toing targets budget-conscious customers and offers a streamlined food ordering experience with hand-picked restaurant partners.

Meanwhile, shares of Swiggy ended Friday’s trading session down 2.78%. ₹273.10

Swiggy’s foreign shareholding drops below 50%

On the other hand, Swiggy on Tuesday said its total foreign investment has fallen below the 50% threshold, accounting for 49.76% of its fully diluted paid-up equity capital, according to a filing with the regulator. PTI reported.

The company’s foreign shareholding consists of foreign direct investment (FDI), foreign portfolio investment (FPI) and other types of indirect foreign investment.

This development is significant as Swiggy is trying to get recognized as an Indian Owned and Controlled Company (IOCC).

However, in May the company failed to obtain the necessary shareholder approval to amend its Articles of Association, a key step towards achieving IOCC status.

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Swiggy clarified that the reduction in foreign shareholding does not change the ownership or control position of the company and has no impact on its capital, management, business operations, voting rights or rights attached to equity shares.

“Any material developments regarding this matter will be disclosed in accordance with applicable law,” the application said.

Securing the India Owned and Controlled Company (IOCC) status will enable Swiggy to directly own inventory from its flash commerce platform Instamart; This is a move that could strengthen supply chain control and potentially increase profit margins.