Exclusive: Udaan Acquires Lynk Logistics From Swiggy In ₹500 Crore Deal

Udaan is buying LYNK Logistics from Swiggy for ₹500 crore, bringing a retail distribution network serving consumer brands and retailers under one of India’s better-known B2B commerce platforms.

The Udaan acquires Lynk Logistics deal is also giving Swiggy a stake in its buyer. Swiggy will receive an approximately 2.8% stake in Udaan as consideration for the acquisition, through preference equity shares issued by Trustroot Internet, Udaan’s parent company.

Swiggy will separately invest another ₹75 crore in Udaan for an additional approximately 0.4% stake. The two transactions mean Swiggy will hold roughly 3.2% of Udaan, based on the disclosed figures.

The deal gives Udaan something difficult to build overnight: an established distribution operation, relationships with consumer brands and access to a large network of retailers.

What Does The Udaan Lynk Acquisition Include?

The headline number is ₹500 crore, but the structure needs a little unpacking.

Udaan is acquiring LYNK for ₹500 crore, with the acquisition consideration being settled through preference equity shares issued to Swiggy by Trustroot Internet. This is separate from Swiggy’s ₹75 crore investment in Udaan.

So, ₹500 crore is the reported value of the LYNK acquisition, while ₹75 crore is additional capital that Swiggy is putting into Udaan. The two should not be combined and described as a ₹575 crore acquisition.

The transaction is particularly interesting because Swiggy is not simply walking away with cash. It is swapping its ownership of LYNK for exposure to Udaan, while also putting fresh money into the B2B commerce company. 

What Is LYNK Logistics?

LYNK is not a conventional courier or logistics company. 

Founded in 2015 by Abinav Raja and Shekhar Bhende, LYNK is a technology-led FMCG retail distribution company. Its platform helps consumer brands reach retailers through distribution, warehousing, inventory management and logistics.

When Swiggy announced its acquisition of LYNK in July 2023, it said the company had a network of more than 100,000 retail stores across the top eight cities in India. LYNK was positioned as a way for FMCG brands to expand their retail presence through a technology-driven distribution network. 

That makes the business relevant to Udaan for reasons beyond its logistics infrastructure. The retailer relationships, brand connections, distribution operations and technology can all complement Udaan’s existing B2B network. 

Why Is Swiggy Selling LYNK?

Swiggy bought LYNK in July 2023 through a share-swap transaction, bringing the retail distribution company into its broader business portfolio.

At the time, the acquisition marked Swiggy’s move into B2B retail distribution and gave it access to LYNK’s network of retailers and consumer brands. Swiggy did not disclose the value of the 2023 transaction.

Two years later, the company is taking a different route!

Rather than continuing to own LYNK directly, Swiggy will now hold a minority stake in Udaan. That gives it exposure to the broader B2B commerce business while transferring LYNK’s operations to a company focused specifically on this market.

Why Udaan Wants LYNK?

For Udaan, the Lynk Logistics acquisition provides something that can take years to build: an established distribution network connecting brands with retailers.

Yup! You heard right…

Building a distribution network from scratch is expensive and time-consuming. A company has to bring retailers onto its platform, establish relationships with brands, create supply-chain links and develop enough volume in each market to make the model work.

Udaan can potentially skip some of that groundwork with LYNK.

The four markets of Bengaluru, Hyderabad, Chennai and Kolkata reportedly generate around 75% of LYNK’s revenue. These are important consumption centres with large retailer bases, making the network particularly useful for Udaan as it looks to deepen its presence in key markets.

The acquisition also gives Udaan another route to serve consumer brands. Instead of relying only on its existing B2B marketplace, it will have LYNK’s established distribution capabilities alongside its own platform.

That combination is arguably the biggest strategic attraction of the deal.

Udaan’s Financial Position Before The Deal

The acquisition comes as Udaan has been trying to improve the economics of its core business.

According to figures disclosed by the company, revenue grew at about 25% CAGR across the 10 quarters from Q4 CY23 to Q1 CY26. Contribution margin improved by nearly 500 basis points, while EBITDA burn fell by around 70%.

Udaan also said private labels contributed between 15% and 25% of Staples sales across its operating cities. Bengaluru, its largest market, had turned EBITDA profitable.

These figures matter because B2B commerce is not simply about selling more products. The business also needs to make each transaction increasingly efficient. A higher contribution margin means more money is left after variable costs, while lower EBITDA burn indicates that the company is spending less to operate the business.

Udaan’s $160 Million Recapitalisation

Udaan completed a $160 million recapitalisation shortly before announcing the LYNK deal.

The transaction included fresh equity, new debt and the conversion of existing debt into equity. Investors including Lightspeed Venture Partners, M&G Investments and Moonstone Capital were involved in the broader financing exercise, while approximately $45 million in private-credit financing was also raised.

The distinction matters. Udaan did not receive the entire $160 million as fresh cash. Debt conversion was also part of the exercise, helping simplify its capital structure.

The timing gives some context to the LYNK acquisition. Udaan is adding an established distribution business while simultaneously working to improve its financial position.

What The Udaan Acquisition Means For B2B Commerce?

Udaan now has to integrate LYNK’s operations without losing the value of the network it is acquiring.

The broader market includes companies such as Jumbotail, ElasticRun and 1K Kirana Bazaar, along with several regional and specialised distributors. Competition is built around a relatively simple challenge: getting products from brands to India’s enormous and fragmented retailer base efficiently.

LYNK gives Udaan another piece of that puzzle.

For brands, the combination could mean access to a broader distribution network. For Udaan, it offers an opportunity to add scale in markets where LYNK already has established operations.

And for Swiggy, the deal changes the nature of its bet. It is giving up LYNK as a standalone business but taking equity exposure to Udaan instead.

The result is a fairly straightforward trade: Udaan gets distribution scale, LYNK moves to a B2B-focused owner, and Swiggy keeps a financial interest in the company acquiring its business.

Note: We have also explained the business model of Udaan. Go through the article for more info. 

Wrap-Up

Udaan acquires Lynk Logistics is not just a headline. It is a transaction that’s worth more than a straightforward business sale. Udaan gets an established retail distribution network and stronger access to consumer brands and retailers.

LYNK gets a new strategic home under a dedicated B2B commerce platform. Swiggy exits direct ownership of the business while taking a minority stake in Udaan.

The ₹500 crore acquisition therefore brings together two complementary distribution businesses while giving Swiggy continued exposure to India’s B2B commerce opportunity!