Udaan to acquire Swiggy-owned Lynk Logistics for Rs 500 Cr
Swiggy has agreed to sell Lynk Logistics to Udaan for Rs 500 crore, with the transaction giving Swiggy a stake in Udaan and expanding Udaan’s retail distribution reach.
The Deal: Udaan Buys Lynk Logistics From Swiggy
Swiggy has agreed to sell its retail distribution business Lynk Logistics to eB2B platform Udaan for Rs 500 crore. The transaction is aimed at expanding Udaan’s presence across key consumption markets and adding Lynk’s distribution capabilities to its platform.
As part of the deal, Swiggy will receive an approximately 2.8% stake in Udaan through preference equity shares issued by Trustroot Internet Pvt Ltd, Udaan’s parent entity. Swiggy will also invest Rs 75 crore in primary equity in Udaan for an additional 0.4% stake.
Why Lynk Matters to Udaan’s Retail Distribution Push
The acquisition brings Lynk’s distribution capabilities, brand relationships and retail network into Udaan’s platform. Bengaluru, Hyderabad, Chennai and Kolkata together account for around 75% of Lynk’s revenue, making the deal relevant to Udaan’s expansion in major consumption markets.
Lynk was founded in 2015 and had a network of more than 100,000 retail stores across eight cities. It worked with leading FMCG brands as an authorised distributor, giving Udaan a wider base to connect consumer brands with retailers.
Udaan’s Financial Context Before the Acquisition
The deal comes as Udaan continues to improve its financial performance. Over the 10 quarters from Q4 CY23 to Q1 CY26, its revenue grew at a CAGR of around 25%, contribution margin improved by nearly 500 basis points and EBITDA burn declined by around 70%.
Udaan’s private labels now account for 15–25% of Staples sales across operating cities, while Bengaluru, its largest market, has turned EBITDA profitable. The acquisition also follows Udaan’s $160 million recapitalisation involving fresh equity, new debt and debt-to-equity conversion from Lightspeed Venture Partners, M&G Investments and Moonstone Capital.
Competitive Takeaway for India’s eB2B Market
Lynk directly or indirectly competes with platforms including Udaan, 1K Kirana Bazaar, Jumbotail and ElasticRun. These companies serve retailers through technology-led distribution, procurement and supply chain networks.
For Udaan, adding Lynk strengthens its position in India’s fragmented retail distribution market. Swiggy had acquired Lynk in July 2023 through a share swap deal, marking its entry into the retail B2B distribution market; the value of that transaction was not disclosed at the time.