Swiggy says FSSAI prohibition order on Toing was linked to licence update; stock slips 3%

Swiggy Ltd on Friday said it had received a prohibition order from the Food Safety and Standards Authority of India (FSSAI) in relation to its standalone, budget-focused food ordering and delivery platform, Toing. The company, however, clarified that the matter pertained to the updation of licence particulars and did not involve any food safety concerns.

In a BSE filing made after market hours, Swiggy said it received the prohibition order dated July 6, 2026, from the FSSAI.

"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 'Toing'. The matter related to certain observations by FSSAI regarding updation of licence particulars and involved no food safety concerns," the company said.

Swiggy added that it had addressed the observations forming the basis of the order and subsequently received a modified FSSAI licence on July 9, 2026.

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

"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 company said there is no major financial impact on its overall operations or financial position, adding that no monetary penalty has been imposed under the order.

Explaining the delay in making the disclosure, Swiggy said it was in the process of determining further steps upon receipt of the order.

Unlike the main Swiggy app, Toing is designed for price-sensitive consumers, offering a simplified ordering experience with a curated selection of restaurants.

Earlier in the day, Swiggy shares slipped 2.78 per cent to close at Rs 273.10.

In a separate development, Swiggy recently said its aggregate foreign shareholding fell below the 50 per cent threshold, declining to 49.76 per cent of the company's paid-up equity share capital on a fully diluted basis as of July 6, 2026.