Udaan to Acquire Swiggy’s Lynk for ₹500 Crore in All-Stock Deal

Udaan is set to strengthen its position in India’s business-to-business distribution market by acquiring Lynk Logistics, the retail distribution arm of Swiggy, in a transaction valued at approximately ₹500 crore.

The deal will be completed through an all-stock arrangement under which Udaan’s parent, Trustroot Internet, will issue shares to Swiggy in exchange for the latter’s entire holding in Lynk.

According to Swiggy’s exchange disclosures, Trustroot will issue 166,534 Series R compulsorily convertible preference shares at $314.40 each. The shares are valued at roughly $52.4 million, giving Swiggy an estimated 2.8% stake in Udaan.

Swiggy will also invest an additional ₹75 crore in primary equity in Trustroot. That investment will increase its overall holding in Udaan to approximately 3.2%.

Udaan valuation rises to about $1.9 billion

The transaction puts Udaan's implied valuation at around $1.9 billion, or approximately ₹17,953 crore, based on the issue price.

That represents an increase from the company's previous valuation of around $1.75 billion, recorded during its Series E funding round in January 2024.

The transaction is expected to close by October 22, 2026, subject to customary closing conditions and regulatory approvals.

What Lynk brings to Udaan

Lynk gives Udaan access to an established distribution network serving more than 100,000 retail stores.

Founded in 2015 by Abinav Raja and Shekhar Bhende, Lynk operates as an authorised distributor for FMCG brands. Its operations are particularly concentrated in Bengaluru, Hyderabad, Chennai and Kolkata, with the four cities accounting for roughly 75% of its revenue.

For Udaan, the acquisition adds established brand relationships and retail distribution capabilities in some of India's largest consumption markets.

The move also comes as Udaan expands its private-label business. The company said its own brands account for around 15% to 25% of staples sales in the cities where it operates.

Lynk generated ₹668 crore revenue in FY26

The business being transferred generated approximately ₹668 crore in revenue during FY26, equivalent to about 2.9% of Swiggy's consolidated revenue.

Its net assets stood at approximately ₹500 crore as of March 31, 2026.

Swiggy had acquired Lynk in July 2023, buying the business from Ramco Cements and Ramco Industries. The acquisition marked Swiggy's entry into India's food and grocery retail distribution segment.

Potential business tie-up between Udaan and Swiggy

The transaction could create opportunities for the two companies to work together commercially even after the ownership change.

One potential area is FMCG and staples sourcing. Udaan already works directly with brands and purchases products at national scale, potentially allowing Swiggy to access more favourable sourcing arrangements for inventory used by its Instamart business.

There could also be opportunities involving Swiggy's restaurant network. Restaurants regularly purchase staples, edible oils, fruits and vegetables and packaging materials — categories that overlap with products distributed through Udaan's B2B platform.

Udaan's financial performance has been improving

Udaan said its revenue increased at an annualised compound growth rate of approximately 25% across the 10 quarters from Q4 CY23 to Q1 CY26.

Over the same period, its contribution margin improved by nearly 500 basis points, while EBITDA cash burn declined by around 70%.

Bengaluru, which remains Udaan's largest market, has already reached EBITDA profitability, according to the company.

Udaan co-founder and CEO Vaibhav Gupta said the Lynk acquisition would strengthen the company's operations and expand its presence in important consumption centres.

Swiggy CFO Rahul Bothra said the company remained confident in India's B2B opportunity and Udaan's position in the sector, with the additional ₹75 crore investment reflecting that confidence.

Second distribution acquisition in a little over a year

The Lynk transaction is Udaan's second major acquisition in the distribution space in just over a year.

In July 2025, the company acquired retail technology startup ShopKirana through an all-stock transaction.

The latest deal follows Udaan's $160 million recapitalisation in July, which included fresh equity, new debt and the conversion of part of its outstanding convertible bonds. Lightspeed Venture Partners, M&G Investments and Moonstone Capital backed the transaction, while BlackRock provided around $45 million in private credit.

Udaan also began its reverse-flip process from Singapore to India in March as it prepares for a potential public listing.

What the deal means for Swiggy

For Swiggy, selling Lynk converts its ownership of the distribution business into an equity interest in Udaan while retaining exposure to the B2B commerce sector.

The additional ₹75 crore investment also gives Swiggy a direct financial interest in Udaan's future growth.

The transaction is subject to regulatory approvals and other standard closing conditions, with completion currently expected by October 22.