Swiggy Sells LYNK to Udaan for ₹500 Cr, Takes 3.2% Stake

Udaan has agreed to acquire Swiggy's B2B retail distribution business, LYNK, in a transaction valued at ₹500 crore. The deal, structured as a share swap, will give Swiggy an approximate 3.2% stake in the IPO-bound B2B ecommerce unicorn.

Swiggy's subsidiary, Swiggy Networks Ltd, has entered a share acquisition agreement with Udaan's Singapore-based parent entity, Trustroot Internet Pvt Ltd (TIPL). Under the terms, Swiggy Networks will transfer its entire shareholding in Lynks Logistics Ltd to TIPL. In return, TIPL will issue 1.67 lakh Series R compulsory convertible preference shares (CCPS) to Swiggy Networks at an issue price of $314.40 each. This portion of the transaction is worth $52.37 million and grants Swiggy a roughly 2.8% stake in Udaan.

Swiggy will further invest ₹75 crore in primary capital into Udaan to secure an additional 0.4% equity. The acquisition is expected to be completed by October 22, pending customary closing conditions and regulatory approvals.

Deal Structure and Financials

In an exchange filing, Swiggy detailed the structure. The B2B authorised distribution business is currently operated by Swiggy Networks. Prior to the sale, this business will be transferred to Lynks Logistics under a business transfer agreement. Swiggy stated that for the financial year ended March 31, 2026, this business contributed revenue of ₹668 crore, representing 2.90% of Swiggy's consolidated revenue. The net assets attributable to the business were ₹500 crore as of that date, or 2.73% of the company's consolidated net worth.

Lynks Logistics itself reported nil standalone revenue in FY26 and had a negative net worth of ₹11 lakh as of March 31, 2026. Following the business transfer, Swiggy Networks will sell its entire shareholding in Lynks Logistics to Udaan's parent.

Strategic Rationale for Both Sides

Swiggy CFO Rahul Bothra said combining LYNK with Udaan would merge the former's distribution capabilities with the latter's scale and technology platform. The divestment allows Swiggy to retain exposure to the B2B distribution sector through its minority stake in Udaan while handing the operational business to a larger, specialised operator.

For Udaan, the acquisition aims to deepen its presence in key consumption markets. LYNK's operations are concentrated in Bengaluru, Hyderabad, Chennai, and Kolkata, which together account for about 75% of its revenue. Udaan expects the deal to expand its retail distribution network and strengthen its relationships with consumer brands.

Udaan cofounder and CEO Vaibhav Gupta stated, "The acquisition of LYNK further strengthens our business and expands our presence across some of India’s most important consumption markets." He added that these developments position Udaan strongly for its next growth phase and its ambition to build a technology-led distribution network for India's retail ecosystem.

Background on LYNK and Udaan's Recent Moves

Founded in 2015 by Abinav Raja and Shekhar Bhende, Chennai-based LYNK operates a technology-led platform connecting fast-moving consumer goods (FMCG) brands with retailers. Swiggy acquired LYNK in 2023 to enter the food and grocery retail segment. Co-founder Shekhar Bhende joined Swiggy as a vice president post-acquisition to lead the FMCG retail distribution business but exited in June 2025 and is now reportedly building an AI-led venture in stealth mode.

The transaction follows Udaan's recent completion of a $160 million recapitalisation exercise. According to the company, this involved fresh equity, new debt, and the conversion of existing debt into equity, initiated after creditors started insolvency proceedings. Udaan claims the recapitalisation helped strengthen its balance sheet and enhance financial flexibility.