Swiggy’s diversification into multiple services is now drawing criticism with analysts questioning whether the food and grocery delivery major is spreading itself too thin. What was once hailed as a smart strategic hedge is increasingly being perceived as a risk of over-extension.
In the past six years, Swiggy has launched a slew of verticals, like Dineout, Instamart, Scenes, Snacc, Bolt, InsanelyGood, Assure, Rare, Minis, Swiggy Maxx and most recently, the services marketplace Pyng. While the intent was to boost revenue and leverage its logistics platform, not all ventures have sustained momentum.For instance, Swiggy recently shut down its hyperlocal delivery service, Genie, citing operational challenges. Similarly, InsanelyGood was folded into Instamart last year.
In contrast, its core businesses of food delivery and quick commerce continue to perform strongly. Revenue from the food delivery business grew 18% to Rs 1,629 crore during the January-March quarter of FY25 from Rs 1,375 crore in the same quarter last year. Similarly, revenue from Instamart surged by 115% to Rs 689 crore in Q4 FY25 from Rs 320 crore in Q4 FY24.
Analysts say the company would be better served by doubling down on these high-performing verticals. With rivals like Zomato’s Blinkit leading in quick commerce, Swiggy may need to focus rather than pursue a broad super-app vision. “Diversification can unlock growth and improve margins, but only if it doesn’t hurt operational focus,” said Ankita Vashistha, founder and managing partner, Arise Ventures. “Swiggy’s agility has been a strength, but sustainable scale demands sharper execution,” she added.
While Swiggy’s platform approach was initially seen as a logical extension of its logistics playbook, some believe the firm may now be overstretched. “Startups thrive on focus,” said Anil Sharma, mentor at MentorMyBoard. “Too many verticals can lead to resource drain, internal misalignment, and rising burn rates. Unless each business line reaches operating leverage, this strategy could backfire,” he said.
Sharma added that from an investor’s point of view, the priority should be high-margin, high-frequency services that drive stronger lifetime value per user.
Not all experts are critical though. Some believe Swiggy’s broader platform could succeed if backed by solid execution. “If cross-selling and user experience are well managed, the platform strategy can work,” said Rishav Jain, managing director, Alvarez & Marsal India. “Current tailwinds in events, dining out, and quick commerce could support that vision,” he said.
Still, the dominant view is that diversification without focus can erode brand value and customer trust. “Being everything to everyone is less valuable than excelling in key areas,” Vashistha said. “In capital-intensive markets like India, overreach can dilute both performance and perception,” she added.