Udaan Buys Swiggy-Owned LYNK in INR 500 Crore Share-Swap Deal

The retail distribution platform LYNK, which is owned by Swiggy, has been acquired by business-to-business e-commerce startup Udaan in a share-swap deal worth INR 500 crore. Trustroot Internet Pvt Ltd, the parent company of Udaan, is based in Singapore, and the arrangement calls for Swiggy Networks Ltd, a Swiggy subsidiary, to transfer full ownership of Lynks Logistics Ltd to it.

Trustroot will compensate Swiggy Networks with 166,534 Series R compulsorily convertible preference shares, each of which will be issued at a price of USD 314.40. Swiggy would own roughly 2.8% of Udaan after purchasing the shares, which are valued at around USD 52.37 million.

Swiggy Striking Right Chord with this Deal

Additionally, Swiggy would acquire an extra about 0.4% ownership in Udaan through a main investment of INR 75 crore. As a result of the deal, Swiggy will own about 3.2% of Udaan. Closing on the acquisition is anticipated to take place by October 22, pending regulatory clearances and the usual closing conditions. Lynks Logistics reported a negative net value of INR 11 lakh as of March 31, 2026, while Swiggy stated in an exchange filing that it had no standalone income in FY26.

But right now, Swiggy Networks is in charge of LYNK's authorised business-to-business distribution business. A business transfer agreement will be in place before the transaction to transfer the distribution business from Swiggy Networks to Lynks Logistics. With a revenue contribution of INR 668 crore in FY26, the distribution business made up 2.90% of Swiggy's total revenue. The business's net assets were INR 500 crore as of March 31, 2026, which is 2.73% of Swiggy's total net worth, as stated in the filing.

The tech-driven distribution platform LYNK, which Abinav Raja and Shekhar Bhende established in 2015 in Chennai, links merchants with brands of fast-moving consumer goods. As part of its expansion into food and grocery retail distribution, Swiggy bought LYNK in 2023.

Deal Striking Right Balance for Swiggy and Udaan

About three-quarters of LYNK's income comes from only four cities: Bengaluru, Hyderabad, Chennai, and Kolkata. The acquisition will allow Udaan to extend its retail distribution network in these markets, according to the company. The merger will unify LYNK's distribution operations with Udaan's technological infrastructure and size, according to Rahul Bothra, Swiggy's CFO.

Rather than owning LYNK outright, Swiggy will maintain its exposure to the B2B distribution industry through its minority share in Udaan, thanks to the sale. According to media reports, the acquisition follows Udaan's USD 160 million recapitalisation exercise, which included new equity, new debt, and the conversion of existing debt into equity. The company stated that its goal in undergoing the recapitalisation was to enhance its financial flexibility and balance sheet.