Initial public offering (IPO)-bound business-to-business (B2B) e-commerce (ecom) firm Udaan has acquired LYNK Logistics Limited (LYNK), Swiggy’s wholly owned, technology-driven retail distribution platform, for ₹500 crore. 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. As part of the transaction, Swiggy will acquire about 2.8 per cent stake in Udaan and make a primary equity investment of ₹75 crore in TIPL for an additional 0.4 per cent stake in Udaan.
“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,” said Vaibhav Gupta, Co-Founder and CEO, Udaan. “The acquisition of LYNK further strengthens our business and expands our presence across some of India’s most important consumption markets. Together, these developments position Udaan strongly for its next phase of growth and our ambition to build a technology-led distribution network for India’s retail ecosystem.”
This is the second major acquisition by Udaan after acquisition of retail technology startup ShopKirana in an all-stock transaction last year.
According to the analysts, the transaction also creates opportunities for future strategic collaboration between Udaan and Swiggy, bringing together the complementary capabilities of both organisations.
The acquisition of LYNK comes as Udaan continues to demonstrate sustained improvement in its operating and financial performance. Over the last 10 quarters from Q4 CY23 to Q1 CY26, Udaan’s revenue grew at a CAGR of approximately 25 per cent, while contribution margin improved by nearly 500 basis points and earnings before interest, taxes, depreciation, and amortization (Ebitda) burn reduced by around 70 per cent. The company has also continued to scale higher-margin businesses, with private labels now contributing 15–25 per cent of Staples sales across operating cities. Bengaluru, Udaan’s largest operating city, has achieved EBITDA profitability, demonstrating the scalability of its cluster-led operating model and providing a strong foundation to extend profitability across its broader network.
“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. 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, Swiggy Ltd. “As part of this transaction, we are also investing ₹75 crore in primary capital into Udaan, reflecting our continued confidence in the space. 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.”
The transaction builds on Udaan’s recent $160 Million recapitalisation exercise, comprising fresh equity, new debt and debt-to-equity conversion by Lightspeed Venture Partners, M&G Investments and Moonstone Capital, including approximately $45 Million of private credit financing from a leading global investment management firm. The recapitalisation strengthened Udaan’s balance sheet and enhanced financial flexibility, supporting its trajectory towards profitable growth and long-term public market readiness.
The acquisition of LYNK will further strengthen Udaan’s distribution platform, bringing complementary distribution capabilities, brand relationships and retail networks. Bengaluru, Hyderabad, Chennai and Kolkata collectively contribute approximately 75 per cent of LYNK’s revenue, giving Udaan greater depth across important markets and complementing its cluster-led operating model. The acquisition will also expand Udaan’s ability to connect leading consumer brands with a wider network of retailers.
The acquisition is subject to customary closing conditions and applicable regulatory approvals.
Kotak Investment Banking acted as the financial advisor to Udaan on the transaction.
