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Swiggy's subsidiary, Swiggy Networks Ltd, has entered a share acquisition agreement with B2B ecommerce unicorn Udaan to acquire Swiggy-owned retail distribution platform LYNK in a share-swap transaction valuing the business at ₹500 Cr. Under the deal, Swiggy Networks will transfer its entire shareholding in Lynks Logistics Ltd to Trustroot Internet Pvt Ltd (TIPL), Udaan’s Singapore-based parent entity. In return, TIPL will issue 1.67 Lakh Series R CCPS to Swiggy Networks at an issue price of $314.40 apiece. The shares, worth $52.37 Mn, will give Swiggy a roughly 2.8% stake in Udaan. Swiggy will further invest ₹75 Cr in primary capital in Udaan for an additional 0.4% stake, taking its total shareholding to about 3.2%. The acquisition is expected to be completed by October 22, subject to customary closing conditions and regulatory approvals. How The Deal Is Structured In an exchange filing, Swiggy said Lynks Logistics reported nil standalone revenue in FY26 and had a negative net worth of ₹11 Lakh as of March 31, 2026. However, the B2B authorised distribution business is currently operated by Swiggy Networks. Before the sale, Swiggy Networks will transfer this business to Lynks Logistics under a business transfer agreement. “During the financial year ended March 31, 2026, the said business contributed revenue of ₹668 Cr, representing 2.90% of the consolidated revenue of the company. The net assets attributable to the said business were ₹500 Cr as at March 31, 2026, representing 2.73% of the consolidated net worth of the company,” Swiggy said. Following the transfer of the business, Swiggy Networks will sell its entire shareholding in Lynks Logistics to Udaan’s parent entity. LYNK’s operations are concentrated in Bengaluru, Hyderabad, Chennai, and Kolkata, which together account for about 75% of its revenue. Udaan expects the acquisition to expand its retail distribution network and strengthen its relationships with consumer brands. Swiggy Exits B2B Distribution Founded in 2015 by Abinav Raja and Shekhar Bhende, Chennai-based LYNK operates a technology-led distribution platform connecting FMCG brands with retailers. Swiggy acquired LYNK in 2023 to enter the food and grocery retail segment. LYNK cofounder Bhende joined Swiggy as a vice president post the acquisition to lead the FMCG retail distribution business under the foodtech company. Bhende exited Swiggy in June 2025 and is currently building an AI-led business in stealth. Swiggy CFO Rahul Bothra said combining LYNK with Udaan would bring together the former’s distribution capabilities and the latter’s scale and technology platform. The divestment will allow Swiggy to retain exposure to the B2B distribution opportunity through its minority stake in Udaan, while transferring the business to a larger, specialised operator. For Udaan, the transaction comes after it completed a $160 Mn recapitalisation exercise comprising fresh equity, new debt, and conversion of existing debt into equity following the initiation of insolvency proceedings by its creditors. The B2B ecommerce unicorn said the recapitalisation helped it strengthen its balance sheet and enhance its financial flexibility. “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," Udaan cofounder and CEO Vaibahav Gupta said. Edited by Vinaykumar Rai
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