Udaan acquires Swiggy's Lynk Logistics in ₹500 crore deal
Udaan, a business-to-business (B2B) e-commerce platform, has acquired Lynk Logistics, a retail distribution firm owned by Swiggy, in a deal that values Lynk at ₹500 crore.
As per the agreement, Swiggy will receive a 2.8% stake in Udaan as part of the transaction. Additionally, Swiggy will invest ₹75 crore in primary equity in Udaan, which will give it an additional 0.4% stake.
The transaction will be settled through the issuance of preference equity shares to Swiggy in Trustroot Internet Private Limited (TIPL), the parent entity of Udaan, according to a media statement.
The acquisition comes amid Udaan's recent recapitalisation exercise of $160 million, which comprised fresh equity, new debt, and debt-to-equity conversion by investors including Lightspeed Venture Partners, M&G Investments and Moonstone Capital. This included approximately $45 million of private credit financing from a leading global investment management firm.
Vaibhav Gupta, Co-Founder and CEO of Udaan, said, "This deal is a strong endorsement of the huge eB2B opportunity and the progress Udaan has made in building an efficient and sustainable business. We have remained focused on strengthening our fundamentals, improving unit economics and demonstrating the scalability of our cluster-led operating model."
Gupta added that the acquisition of Lynk would further strengthen Udaan's business and expand its presence across some of India's most important consumption markets.
Rahul Bothra, CFO of Swiggy Ltd, said that a large B2B opportunity exists in the country. "Bringing Lynk together with Udaan combines complementary capabilities with Udaan's scale and technology-led platform serving India's retail ecosystem. We're confident this brings Lynk's brands and retail partners a stronger platform to grow on, and we look forward to seeing Udaan build on this in its next phase of growth," he added.
Udaan's financial performance over the last 10 quarters, from Q4 CY23 to Q1 CY26, shows revenue growing at a compound annual growth rate of approximately 25%. Contribution margin improved by nearly 500 basis points, and EBITDA burn was reduced by around 70%. The company has also scaled higher-margin businesses, with private labels now contributing 15–25% of Staples sales across its operating cities.
Bengaluru, Udaan's largest operating city, has achieved EBITDA profitability, demonstrating the scalability of its cluster-led operating model and providing a foundation to extend profitability across its wider network, according to data provided by Udaan.
The acquisition adds Lynk's retail distribution capabilities to Udaan's existing platform, strengthening its presence in India's B2B e-commerce landscape.
