Udaan Acquires Swiggy-Owned LYNK Logistics in Rs 500 Crore Strategic Deal

Business-to-business commerce platform Udaan announced on September 7 that it has acquired LYNK Logistics, the retail distribution arm previously held by food delivery major Swiggy, in a transaction valued at Rs 500 crore. The deal, which integrates LYNK’s established retail network and brand relationships into Udaan’s existing operations, will be settled through the issuance of preference equity shares in Trustroot Internet, the parent entity of Udaan. As a result of this transaction, Swiggy will secure an approximately 2.8% stake in the B2B platform. Additionally, Swiggy has committed to a primary investment of Rs 75 crore in Trustroot, further increasing its total stake in Udaan by roughly 0.4%.

This acquisition arrives as Udaan aggressively pursues a strategy of financial consolidation and operational efficiency. The company has recently completed a $160 million recapitalization exercise, which involved a mix of fresh equity, new debt, and debt-to-equity conversions involving major investors such as Lightspeed Venture Partners, M&G Investments, and Moonstone Capital. By absorbing LYNK, Udaan aims to bolster its presence in key consumption markets, specifically Bengaluru, Hyderabad, Chennai, and Kolkata, which collectively account for approximately 75% of LYNK’s total revenue. The move is designed to complement Udaan’s cluster-led operating model and enhance its ability to connect consumer brands with a broader network of retailers.

For Udaan, the acquisition of LYNK Logistics represents a significant expansion of its distribution capabilities. LYNK, which was originally acquired by Swiggy in 2023 through a share-swap deal, operates as a technology-led retail distribution platform. By integrating LYNK’s existing infrastructure, Udaan expects to strengthen its competitive position against other eB2B players such as Jumbotail, ElasticRun, and 1K Kirana Bazaar. The integration of LYNK’s network of over 100,000 retail stores across eight cities provides Udaan with immediate access to established brand relationships and a more robust supply chain footprint.

“Bringing LYNK together with udaan, the market leader, combines complementary capabilities with udaan's scale and technology-led platform serving India's retail ecosystem,” said Rahul Bothra, CFO of Swiggy. The transaction allows Swiggy to exit its retail distribution venture while gaining a strategic minority stake in a specialized B2B commerce leader. This shift reflects a broader trend of consolidation within India’s fragmented retail distribution sector, where companies are increasingly focusing on core competencies and sustainable unit economics rather than rapid, capital-intensive expansion.

Udaan’s acquisition of LYNK is underpinned by a marked improvement in its internal financial performance over the last two years. According to company data, Udaan achieved a 25% compound annual growth rate (CAGR) in revenue between the fourth quarter of calendar year 2023 and the first quarter of 2026. During this same period, the company reported that its contribution margin improved by nearly 500 basis points, while its EBITDA burn was reduced by approximately 70%. These metrics suggest a successful pivot toward a more disciplined, profitable growth model.

Udaan has been scaling its higher-margin business segments, with private labels now contributing between 15% and 25% of its Staples sales across its operating cities. Notably, Bengaluru, which serves as the company’s largest operating market, has already achieved EBITDA profitability. This financial progress was bolstered by the recent $160 million recapitalization, which included $45 million in private credit financing from a leading global investment management firm. This capital infusion has provided the company with the necessary financial flexibility to pursue strategic acquisitions like LYNK while maintaining its path toward long-term public-market readiness.

Company leadership views the LYNK acquisition as a validation of the long-term potential within the Indian eB2B landscape. Vaibhav Gupta, co-founder and CEO of Udaan, emphasized that the deal serves as a strong endorsement of the company’s progress in building an efficient and sustainable business model. “This deal is a strong endorsement of the huge eB2B opportunity and the progress udaan has made in building an efficient and sustainable business,” Gupta stated. The integration is expected to allow Udaan to leverage LYNK’s specialized logistics and distribution expertise to better serve its existing retail partners.

For Swiggy, the transaction represents a strategic realignment. By converting its ownership of LYNK into a minority stake in Udaan, Swiggy maintains exposure to the B2B retail sector without the operational burden of managing a dedicated distribution business. Rahul Bothra noted that the additional Rs 75 crore primary investment reflects Swiggy’s continued confidence in the eB2B space and in Udaan’s role as a category creator. The collaboration is seen as a way to combine Swiggy’s logistics experience with Udaan’s established scale in the retail ecosystem.

While the agreement has been finalized, the acquisition remains subject to customary closing conditions and necessary regulatory approvals. The transaction was facilitated by Kotak Investment Banking, which acted as the financial adviser to Udaan. As the companies move toward integration, the focus will likely shift to merging LYNK’s technology-led distribution platform with Udaan’s existing cluster-based operations. This process will be critical in realizing the anticipated synergies in the four key markets where LYNK holds a dominant revenue share.

Looking ahead, the success of this acquisition will be measured by Udaan’s ability to maintain its improved unit economics while scaling the newly acquired retail network. The company’s ability to integrate LYNK’s brand relationships without disrupting existing operations will be a key indicator of its operational maturity. As Udaan continues to prepare for potential public-market entry, this deal serves as a strategic milestone in its efforts to solidify its position as the dominant player in India’s eB2B commerce sector.