Swiggy Ltd has resolved an issue flagged by the Food Safety and Standards Authority of India (FSSAI) concerning its food ordering and delivery platform, Toing, after updating its licence particulars. According to the company's regulatory filing to stock exchanges on Friday, the prohibition order was dated July 6, 2026 from the FSSAI's Designated Officer in Karnataka, seeking an explanation regarding the Toing platform and the company's FSSAI licence particulars. The company clarified that the matter involved no food safety concerns and was limited to the updation of licence particulars for the Toing platform. As reported by NDTV Profit, the company addressed these observations and received a modified FSSAI licence on July 9, 2026, successfully resolving the regulatory concerns that had initially led to the prohibition order.
Swiggy stated that the development has no major financial or operational impact on the company and that no monetary penalty has been imposed under the order to date. The company added that there is no major financial impact on its operations or financial position and that the disclosure was made after it completed the process of determining the appropriate course of action following receipt of the FSSAI order. According to NDTV Profit, the company emphasized that no monetary penalty has been imposed in connection with the order, reinforcing that the issue was strictly related to licence particulars and not related to any food safety violations.
Shares of the company closed 2.8% lower at ₹272.99 on Friday following the announcement, as reported by Live Mint. The stock has declined about 30% so far this year. The company said it has since addressed the observations forming the basis of the order and received a modified FSSAI licence on July 9, 2026, resolving the regulatory concerns that had initially led to the prohibition order. The company also disclosed that it delayed informing stock exchanges as it was evaluating the next steps after receiving the order, as reported by Live Mint.
The disclosure comes as the FSSAI has stepped up enforcement across India's food industry in recent weeks, with the regulator issuing notices to several major companies including Nestlé India, KFC, Open Secret, and Flipkart on complaints related to food hygiene and contamination. According to Live Mint, the FSSAI has also issued notices to companies such as Emami Healthy & Tasty, Lotte India, Ferns N Petals, and Kubera Foods over alleged violations in labelling and health claims. Quick commerce platforms have faced increased regulatory scrutiny over food safety compliance in recent years, with the Maharashtra Food and Drug Administration taking action against Zepto and Blinkit in June last year for serious lapses in food safety and hygiene.
In a separate development, Swiggy announced that its total foreign investment has fallen below the 50% threshold, accounting for 49.76% of its fully diluted paid-up equity share capital, according to a regulatory filing reported by PTI. The company's foreign shareholding comprises foreign direct investment (FDI), foreign portfolio investment (FPI), and other forms of indirect foreign investment. This development is significant as Swiggy has been seeking recognition as an Indian Owned and Controlled Company (IOCC). However, in May, the company failed to obtain the required shareholder approval to amend its Articles of Association, a key step towards achieving IOCC status. As reported by Live Mint, securing IOCC status would enable Swiggy's quick commerce platform, Instamart, to directly own inventory, potentially improving supply chain control and profit margins.
