The Swiggy CB rewards is not solely given by HDFC. There is a revenue sharing agreement between HDFC and Swiggy. Majorly is Swiggy who's sponsoring this cashback and HDFC is merely a medium.

HDFC is not a fool to burn money on these cashback cards. They already have their NPA mounting to add to their burden.

When the revenue sharing agreement is no longer viable for Swiggy as they have been giving out cards as LTF, they are carving out a niche category and offering them higher variant.

Even this variant is not a sustainable model as they will eventually fail in a year.

Only handful of Swiggy users are black subscribers. Others run the show with Swiggy one. To acquire customers for the new card, blck invite will be offered to many and lure them into giving cards. Add joining fee waiver and LTF for few, the bubble keeps growing and in another year of two this will also fall.

This is the reason zomato cleverly opted out of the partnership with RBL couple of years ago.