Udaan to buy Swiggy’s B2B distribution arm Lynk for ₹500 cr in all-stock deal

Trustroot Internet, Udaan’s parent, will issue Swiggy Networks 166,534 Series R compulsorily convertible preference shares priced at $314.4 each, or about $52.4 million, in exchange for its entire shareholding in Lynks Logistics, according to disclosures made by Swiggy to exchanges on Monday. That gives Swiggy about 2.8% in Udaan. Swiggy will separately invest ₹75 crore of primary equity in Trustroot for another 0.4%, taking its holding to roughly 3.2%.

At the issue price, the deal values Udaan at roughly $1.9 billion (approximately ₹17,953 crore). The company was last valued at about $1.75 billion in its Series E round in January 2024.

The business being sold contributed revenue of ₹668 crore in FY26, or 2.90% of Swiggy’s consolidated revenue, and had net assets of ₹500 crore as of March 31, 2026, the disclosures showed. It currently sits inside Swiggy Networks and will be transferred into Lynks Logistics, a step-down subsidiary that reported nil revenue and a negative net worth of ₹11 lakh in FY26, before the shares change hands. Swiggy said it expects the sale to complete by October 22, 2026.

Swiggy had acquired Lynk in July 2023 for an undisclosed amount, buying out The Ramco Cements and Ramco Industries, in what was then its entry into India’s food and grocery retail distribution market. Founded in 2015 by Abinav Raja and Shekhar Bhende, Lynk works with FMCG brands as an authorised distributor across a network of more than 100,000 retail stores. Bengaluru, Hyderabad, Chennai and Kolkata account for about 75% of its revenue.

For Udaan, Lynk brings brand relationships and retail reach in four metros at a point when it is pushing its own labels. Private labels contribute 15-25% of staples sales across its operating cities, the company said.

Udaan said revenue grew at a CAGR of about 25% over the 10 quarters from Q4 CY23 to Q1 CY26, contribution margin improved by nearly 500 basis points and Ebitda burn fell about 70%. Bengaluru, its largest market, is Ebitda profitable, it added.

“The acquisition of Lynk further strengthens our business and expands our presence across some of India’s most important consumption markets,” said Vaibhav Gupta, co-founder and CEO, Udaan.

“We are firm believers in the large B2B opportunity that exists in India, and in Udaan’s position as the category creator in this space,” said Rahul Bothra, CFO, Swiggy, adding that the additional primary capital investment of ₹75 crore reflects Swiggy’s continued confidence in the space.

The transaction also opens up the possibility of commercial collaboration between the two companies, sources said, with sourcing the most immediate area being looked at. Udaan buys FMCG and staples at national scale with direct brand relationships, which could improve terms for Swiggy’s Instamart inventory. Swiggy’s restaurant partners, who buy staples, edible oil, fruits and vegetables and packaging weekly, are a segment Udaan already serves.

The deal follows Udaan’s $160-million recapitalisation in July, comprising fresh equity, new debt and conversion of a portion of its outstanding convertible bonds, backed by Lightspeed Venture Partners, M&G Investments and Moonstone Capital, with about $45 million of private credit from BlackRock.

It is Udaan’s second acquisition in distribution in just over a year, after it bought retail tech startup ShopKirana in an all-stock deal in July 2025. The firm began its reverse flip from Singapore to India in March, ahead of a planned listing.

The transaction is subject to customary closing conditions and regulatory approvals. Kotak Investment Banking advised udaan on the deal.