Swiggy Shuts Down Snacc As 15-Minute Food Delivery Hits A Roadblock

Swiggy has chosen to close its independent 15-minute meal delivery application, Snacc, 15 months after its launch. Its service, which was launched in early 2025, was aimed at passing affordable home-style meals in micro-kitchens operated by the company in a few cities like Bengaluru and Gurugram.

Although the initial traction indicated customer interest, the company concluded that the cost structure and problems with scalability made the model hard to maintain. The company wants to redirect its efforts toward business segments with stronger long-term growth prospects. Employees working on Snacc will be reassigned internally.

The company wants to focus on innovations with stronger long-term potential, and employees from Snacc will be absorbed into other verticals.

What Was Snacc And How Did It Compete?

Launched in January 2025, Snacc was an autonomous delivery service that provided home-style food and easy meals. The idea was aimed at the customers with a low-cost concern and competed directly with the ultra-fast dining establishments like Zepto Cafe and the Bistro of Blinkit.

Snacc was launched around the same time Swiggy introduced Bolt, a 15-minute delivery feature within its primary app. Unlike Snacc, Bolt aggregates nearby restaurants within a two-kilometre radius and currently accounts for roughly 10% of total platform orders.

Beyond these initiatives, Swiggy had also experimented with ventures such as 99store, Toing, and the services marketplace Pyng, the latter of which was discontinued shortly after launch.

Swiggy, in its latest shareholder letter, articulated Snacc and Toing as experimental formats that do not work in the same marketplace infrastructure as its main business model, which is a marketplace-based food delivery business.

The company had stated that these experiments were designed to expand the food delivery market by testing alternative formats, including lower-cost and function-driven meal solutions, even if that meant challenging established business structures.

What Do Swiggy’s Latest Financials Show?

The move comes amid rising losses. In Q3FY26, Swiggy’s consolidated net loss widened 33% year-on-year to ₹1,065 crore, even as operating revenue rose 54% to ₹6,148 crore.

Instamart’s losses grew 50% to ₹791 crore, despite revenue rising 76% to ₹1,016 crore. At the same time, revenues of the platform innovations segment, which comprised Snacc, reduced by 59% to ₹9 crore, and the losses increased fourfold to ₹40 crore.

To strengthen its balance sheet, Swiggy raised ₹10,000 crore via a qualified institutional placement (QIP), which was oversubscribed 4.5 times. It has ₹4,605 crore in cash now and anticipates a ₹2,400 crore stake sale in Rapido, which could bring reserves to an approximate ₹17,000 crore.

Meanwhile, competitors continue aggressive capital deployment. Eternal, the parent of Blinkit, reportedly holds ₹18,000 crore in reserves and infused ₹600 crore into Blinkit in November. Zepto has secured $900 million (₹7,400 crore) in liquidity following a recent fundraise.

How Did The Stock React?

Shares of Swiggy closed 2.3% lower at ₹326.20 on the National Stock Exchange (NSE) yesterday. On a year-to-date basis, the stock has declined 16.5%.

The stock, listed at ₹420 in 2024, reached a 52-week high of ₹617.3 earlier in 2025 before correcting sharply as losses widened and competitive pressure in quick commerce intensified.

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What Does This Mean For Investors?

To the investors, the closure of Snacc is an indication that Swiggy is turning to a more stringent approach to capital allocation and strategic focus.

By exiting a standalone, loss-making experiment, Swiggy appears to be prioritising scale-driven and more defensible verticals within its core food delivery and quick commerce ecosystem.

While this move may reduce pressure from non-core bets, broader concerns remain around sustained losses and intense competition in the 10–15 minute delivery segment.

The recent capital raise and the augmenting liquidity position provide the company with financial flexibility, although investors need to monitor the execution discipline, cash burn and progress toward profitability more carefully in the future.

Sources

CNBCTV18

Economic Times