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Foodtech and quick commerce platform Swiggy has agreed to sell its retail distribution business Lynk Logistics to eB2B platform Udaan for Rs 500 crore, in a deal that will expand Udaan’s presence across key consumption markets. As part of the transaction, Swiggy will receive approximately 2.8% stake in Udaan through preference equity shares issued by Trustroot Internet Pvt Ltd, the parent entity of Udaan. Swiggy will also invest Rs 75 crore in primary equity in Udaan for an additional 0.4% stake. The transaction comes as Udaan continues to improve its financial performance. Over the 10 quarters from Q4 CY23 to Q1 CY26, its revenue grew at a CAGR of around 25%, while its contribution margin improved by nearly 500 bps and EBITDA burn declined by around 70%. Its private labels now account for 15–25% of Staples sales across operating cities, while Bengaluru, its largest market, has turned EBITDA profitable. The acquisition will add Lynk’s distribution capabilities, brand relationships and retail network to Udaan’s platform. Bengaluru, Hyderabad, Chennai and Kolkata together contribute around 75% of Lynk’s revenue. The deal will also help Udaan connect leading consumer brands with a wider network of retailers. Lynk directly or indirectly competes with the likes of Udaan, 1K Kirana Bazaar, Jumbotail, ElasticRun and several other eB2B and retail distribution platforms. These companies serve retailers through technology-led distribution, procurement and supply chain networks, making the acquisition relevant to Udaan’s competitive position in India’s fragmented retail distribution market. Swiggy had acquired Lynk in July 2023 through a share swap deal, marking its entry into India’s retail B2B distribution market. The transaction value was not disclosed at the time. Lynk, founded in 2015, had a network of more than 100,000 retail stores across eight cities and worked with leading FMCG brands as an authorised distributor. The latest transaction also follows Udaan’s $160 million recapitalisation, which comprised fresh equity, new debt and debt-to-equity conversion from Lightspeed Venture Partners, M&G Investments and Moonstone Capital. The exercise included around $45 million in private credit financing from a leading global investment management firm and strengthened Udaan’s balance sheet for its next phase of growth. Swiggy CFO Rahul Bothra said the deal combines Lynk’s capabilities with Udaan’s scale and technology-led platform, while Udaan cofounder and CEO Vaibhav Gupta said the acquisition strengthens the company’s business and expands its presence across important consumption markets.
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