Swiggy’s aggressive push to diversify beyond its core food delivery and quick commerce segments is drawing mounting criticism from analysts, who warn that the company may be spreading itself too thin. What was once seen as a smart strategy to leverage its logistics network and expand revenue streams is now raising red flags about operational focus and long-term sustainability.
Over the past six years, the food-tech major has launched a dozen new verticals—including Dineout, Scenes, Snacc, Bolt, InsanelyGood, Assure, Rare, Minis, Swiggy Maxx, and most recently, the services marketplace Pyng. However, not all of these initiatives have delivered. Swiggy shut down its hyperlocal delivery arm Genie due to operational hurdles, while InsanelyGood was folded into Instamart last year.
In contrast, its core businesses are showing robust performance. Swiggy’s food delivery revenue rose 18% year-on-year to ₹1,629 crore in Q4 FY25, while Instamart clocked a 115% jump to ₹689 crore during the same period.
This divergence in performance has prompted analysts to urge sharper prioritization.
“Diversification can unlock growth and improve margins—but only if it doesn’t hurt operational focus,” said Ankita Vashistha, founder and managing partner at Arise Ventures. “Swiggy’s agility has been a strength, but sustainable scale demands sharper execution.”
With competitors like Zomato’s Blinkit gaining ground in quick commerce, industry watchers suggest that Swiggy may need to consolidate and focus on verticals with proven traction.
“Startups thrive on focus,” said Anil Sharma, mentor at MentorMyBoard. “Too many verticals can lead to internal misalignment, resource drain, and higher burn rates. Unless each business line achieves operating leverage, this strategy could backfire.”
Sharma further noted that from an investor standpoint, Swiggy would do well to prioritize high-frequency, high-margin services that enhance customer lifetime value.
Despite the concerns, some experts remain optimistic about Swiggy’s broader platform vision.
“If cross-selling and user experience are well integrated, a multi-service platform can work,” said Rishav Jain, managing director at Alvarez & Marsal India. “Tailwinds in events, dining out, and quick commerce may support this model in the near term.”
Still, the majority view is that diversification without focus can erode brand value and customer trust.
“Trying to be everything to everyone is less valuable than excelling in select categories,” Vashistha added. “In a capital-intensive market like India, strategic overreach can dilute both performance and perception.”
With its IPO plans on the horizon, Swiggy’s next moves will be closely watched. Analysts agree: unless the company reins in its sprawl and doubles down on what works, it risks turning a strength—diversification—into a vulnerability.