Udaan Acquires Swiggy-Owned LYNK Logistics for Rs 500 Crore

Bengaluru-based B2B commerce platform Udaan has agreed to acquire LYNK Logistics, the retail distribution business owned by Swiggy, in a transaction valued at Rs 500 crore. The deal is aimed at strengthening Udaan’s distribution capabilities, brand relationships and retail network across India.

Key Deal Highlights

● Acquisition Value:Rs 500 crore
● Acquirer:Udaan
● Target: LYNK Logistics
● Current Owner:Swiggy
● Swiggy’s Stake in Udaan: Approximately 2.8%
● Additional Swiggy Investment:Rs 75 crore
● Additional Stake: Approximately 0.4% in Udaan
● Transaction Structure: Preference equity shares issued to Swiggy in Trustroot Internet, Udaan’s parent entity.

What Is LYNK Logistics?

LYNK is a technology-led retail distribution platform that works with consumer brands and retailers. The acquisition will add complementary distribution capabilities, brand relationships and retail networks to Udaan’s existing business.

Key Market Presence

Bengaluru, Hyderabad, Chennai and Kolkata together contribute around 75% of LYNK’s revenue. This gives Udaan greater depth in four important markets and complements its cluster-led operating model.

Strategic Benefits for Udaan

The acquisition is expected to strengthen Udaan’s position in India’s retail ecosystem.

● Wider Retail Network: Greater ability to connect consumer brands with retailers.

● Distribution Expansion: LYNK’s distribution capabilities complement Udaan’s existing platform.

● Brand Relationships:Udaan will gain access to LYNK’s established relationships with consumer brands.

● Geographic Strength: Strong presence across Bengaluru, Hyderabad, Chennai and Kolkata.

● Technology & Scale: Combining LYNK’s capabilities with Udaan’s technology-led B2B platform.

Udaan’s Financial Progress

The acquisition comes after Udaan’s recent $160 million recapitalisation, which included fresh equity, new debt and debt-to-equity conversion.

Udaan reported:

● Revenue growth: 25% CAGR between Q4 CY23 and Q1 CY26.

● Contribution margin: Improved by nearly 500 basis points.

● EBITDA burn: Declined by around 70%.

● Private labels: Account for 15–25% of Staples sales across its operating cities.

● Bengaluru:The company’s largest operating city has achieved EBITDA profitability.

Swiggy’s Investment in Udaan

Along with the acquisition, Swiggy will receive an approximately 2.8% stake in Udaan through the issuance of preference equity shares.

Swiggy will separately invest another Rs 75 crore in Trustroot Internet, giving it an additional approximately 0.4% stake in Udaan.

Background of LYNK

Swiggy acquired LYNK in 2023 as part of its efforts to enter India’s retail distribution market. The acquisition at that time was completed through a share-swap transaction.

Outlook for Udaan

The LYNK acquisition comes as Udaan focuses on improving its operating and financial profile and preparing for long-term public-market readiness.

The company said its recent recapitalisation has strengthened its balance sheet and increased financial flexibility as it moves towards profitable growth.

Conclusion

The Rs 500 crore acquisition of LYNK Logistics strengthens Udaan’s distribution network and expands its access to consumer brands and retailers. With Swiggy receiving a stake in Udaan and investing an additional Rs 75 crore, the transaction also creates a strategic relationship between the two companies.

The deal, combined with Udaan’s improving margins, lower EBITDA burn and recent recapitalisation, supports its objective of building a more efficient and sustainable B2B commerce business ahead of its longer-term public-market ambitions.

Source:Moneycontrol, September 7, 2026. Read the original Moneycontrol article