The share issue linked to the transaction values Udaan at about $1.9 billion, or close to ₹17,953 crore. The company’s previous valuation was around $1.75 billion during its Series E funding round in January 2024.
B2B platform Udaan said on Monday that it will acquire Lynk Logistics, Swiggy’s wholly owned retail distribution arm, in an all-stock deal that values the business at ₹500 crore.
Under the proposed transaction, Trustroot Internet, Udaan’s parent company, will issue 166,534 Series R compulsorily convertible preference shares to Swiggy Networks at $314.4 per share. The shares are worth roughly $52.4 million in total and will be issued in exchange for Swiggy Networks’ entire shareholding in Lynks Logistics, according to disclosures filed by Swiggy with the stock exchanges on Monday. Once the share exchange is completed, Swiggy will own about 2.8% of Udaan. It will also make a separate primary equity investment of ₹75 crore in Trustroot, which will give it another 0.4% stake and take its total holding to around 3.2%.
At the proposed issue price, Udaan’s valuation works out to roughly $1.9 billion, or about ₹17,953 crore. The company was last valued at nearly $1.75 billion when it completed its Series E funding round in January 2024.
The business being sold brought in ₹668 crore in revenue during FY26, accounting for 2.90% of Swiggy’s consolidated revenue. The disclosures also showed that it had net assets of ₹500 crore as of March 31, 2026. At present, the business is held under Swiggy Networks and will first be transferred to Lynks Logistics before the shares are handed over. Lynks Logistics is a step-down subsidiary that recorded no revenue in FY26 and had a negative net worth of ₹11 lakh. Swiggy said it expects the transaction to close by October 22, 2026.
Swiggy had bought Lynk in July 2023 for an undisclosed amount by acquiring the stakes of The Ramco Cements and Ramco Industries. The acquisition marked Swiggy’s entry at the time into India’s food and grocery retail distribution business. Lynk was founded in 2015 by Abinav Raja and Shekhar Bhende and works as an authorised distributor for FMCG brands through a network of more than 100,000 retail stores. Around 75% of Lynk’s revenue comes from Bengaluru, Hyderabad, Chennai and Kolkata.
For Udaan, the acquisition adds stronger brand relationships and a larger retail network across four major metro markets at a time when it is also expanding its own-label business. Udaan said private labels currently make up around 15-25% of staples sales across the cities where the company operates.
Udaan said its revenue grew at a CAGR of roughly 25% over the 10 quarters from Q4 CY23 to Q1 CY26. During the same period, the company improved its contribution margin by nearly 500 basis points and reduced its Ebitda burn by around 70%. It also said Bengaluru, its largest market, has reached Ebitda profitability.
“The acquisition of Lynk further strengthens our business and expands our presence across some of India’s most important consumption markets,” said Vaibhav Gupta, co-founder and CEO, Udaan.
“We are firm believers in the large B2B opportunity that exists in India, and in Udaan’s position as the category creator in this space,” said Rahul Bothra, CFO, Swiggy, adding that the additional primary capital investment of ₹75 crore reflects Swiggy’s continued confidence in the space.
Sources said the transaction could also lead to commercial cooperation between Swiggy and Udaan, with sourcing currently being viewed as the most immediate opportunity. Udaan buys FMCG products and staples at a national level and has direct relationships with brands, which could help Swiggy secure better terms for inventory used by Instamart. Swiggy’s restaurant partners also purchase staples, edible oil, fruits and vegetables, and packaging materials every week, and Udaan already serves this segment.
The deal comes after Udaan completed a $160-million recapitalisation in July. The recapitalisation included fresh equity, new debt and the conversion of a portion of its outstanding convertible bonds. Lightspeed Venture Partners, M&G Investments and Moonstone Capital backed the transaction, while BlackRock provided approximately $45 million in private credit.
This is Udaan’s second acquisition in the distribution sector in a little over a year. In July 2025, the company acquired retail technology startup ShopKirana through an all-stock transaction. Udaan also started its reverse flip from Singapore to India in March ahead of a planned listing.
The transaction is subject to customary closing conditions and required regulatory approvals. Kotak Investment Banking advised udaan on the deal.
