Bengaluru-based B2B commerce platform Udaan has agreed to acquire LYNK Logistics, Swiggy’s technology-driven retail distribution business, in a transaction valued at ₹500 crore.
The deal marks a significant development in India’s B2B and retail distribution landscape. While Udaan will gain LYNK’s distribution capabilities, brand relationships and retailer network, Swiggy will retain exposure to the B2B opportunity by becoming a minority shareholder in Udaan.
Under the transaction, Swiggy will receive approximately a 2.8% stake in Udaan through the issuance of preference equity shares. In addition, Swiggy will invest ₹75 crore in Udaan’s parent company, Trustroot Internet Private Limited (TIPL), for another approximately 0.4% stake.
Together, the transactions will give Swiggy a total stake of around 3.2% in Udaan.
The transaction is expected to be completed by October 22, 2026, subject to customary closing conditions and applicable regulatory approvals.
WHAT DOES THE ₹500 CRORE DEAL INVOLVE?
Despite being described as a ₹500 crore acquisition, the transaction is not structured as a straightforward cash purchase.
Swiggy Networks, a wholly owned subsidiary of Swiggy, will transfer its entire shareholding in LYNK Logistics to Trustroot Internet Private Limited, the parent company of Udaan.
As consideration, TIPL will issue 166,534 Series R Compulsorily Convertible Preference Shares to Swiggy at an issue price of $314.40 per share. This will give Swiggy an approximately 2.8% stake in Udaan.
Separately, Swiggy will invest ₹75 crore of primary capital in TIPL, giving it an additional approximately 0.4% stake.
This will take Swiggy’s overall ownership in Udaan to approximately 3.2%.
WHY IS UDAAN ACQUIRING LYNK?
For Udaan, the acquisition is primarily about expanding its distribution network and strengthening its presence across major consumption markets.
LYNK is a technology-led retail distribution platform that works with consumer brands and retailers. Its operations cover areas such as distribution, warehousing, inventory management and logistics.
By bringing LYNK into its network, Udaan will gain access to complementary distribution capabilities, established brand relationships and a wider retail network.
Bengaluru, Hyderabad, Chennai and Kolkata together contribute around 75% of LYNK’s revenue, making these markets particularly important to the acquisition.
The deal will allow Udaan to deepen its presence in these major consumption centres while strengthening its ability to connect consumer brands with retailers.
LYNK’S BUSINESS AND FINANCIALS
LYNK was founded in 2015 and was acquired by Swiggy in 2023 as part of the food-delivery company’s efforts to enter India’s retail distribution market.
The business has since operated as a technology-driven B2B distribution platform connecting FMCG and consumer brands with retail stores.
For the financial year ended March 31, 2026, LYNK generated revenue of approximately ₹668 crore.
The business therefore brings a sizeable existing operation and retail network to Udaan rather than being a purely early-stage acquisition.
SWIGGY EXITS DIRECT B2B OPERATIONS BUT RETAINS EXPOSURE
The transaction represents a strategic shift for Swiggy.
Swiggy entered the retail distribution space through its acquisition of LYNK in 2023. However, with the latest transaction, the company is transferring its direct ownership of the business to Udaan.
Importantly, Swiggy is not completely walking away from the B2B distribution opportunity.
Instead, it is converting its ownership of LYNK into a minority stake in Udaan. With a total holding of approximately 3.2%, Swiggy will continue to have financial exposure to the growth of India's B2B commerce market.
Swiggy CFO Rahul Bothra said the company remains confident in the large B2B opportunity in India and in Udaan’s position in the sector.
The combination of LYNK’s distribution capabilities with Udaan’s scale and technology platform could also create opportunities for future strategic collaboration between the two companies.
UDAAN’S BIGGER GROWTH PLAN
The acquisition comes at an important stage in Udaan’s growth journey.
The company recently completed a $160 million recapitalisation involving fresh equity, new debt and debt-to-equity conversion. The exercise also included around $45 million in private-credit financing.
Udaan has been working to strengthen its balance sheet, improve unit economics and move towards profitable growth as it prepares for its longer-term public-market ambitions.
The company said its revenue grew at a compound annual growth rate of around 25% between Q4 CY23 and Q1 CY26.
During the same period, its contribution margin improved by nearly 500 basis points, while EBITDA burn declined by around 70%.
Udaan has also been expanding its higher-margin private-label business, with private labels now contributing around 15-25% of Staples sales across its operating cities.
Bengaluru, its largest operating market, has also achieved EBITDA profitability.
WHAT THIS MEANS FOR INDIA’S FMCG DISTRIBUTION MARKET
The Udaan-LYNK deal is significant beyond the two companies involved.
India’s FMCG distribution ecosystem remains highly fragmented, with thousands of brands, distributors, wholesalers and neighbourhood retailers operating across the country.
Technology-led B2B platforms are increasingly attempting to bring these parts of the supply chain onto a more integrated network.
The acquisition gives Udaan greater access to retail stores and strengthens its relationships with consumer brands. It could also help the company improve distribution efficiency and expand its presence in some of India's most important consumption markets.
For FMCG companies, a larger technology-enabled distribution network could potentially offer wider retailer access, better supply-chain visibility and more efficient product movement.
THE BIGGER PICTURE
The deal essentially represents a strategic realignment for both companies.
For Udaan, LYNK brings scale, distribution infrastructure, brand relationships and retailer reach.
For Swiggy, the transaction allows it to step away from directly operating the B2B distribution business while retaining a 3.2% financial interest in Udaan.
For the broader FMCG and retail ecosystem, the deal highlights the growing importance of technology-led distribution and the continuing consolidation taking place in India’s B2B commerce market.
The transaction is expected to close by October 22, 2026, subject to customary conditions and regulatory approvals.
At a time when India’s retail market is rapidly evolving, the combination of Udaan’s B2B platform and LYNK’s distribution network could become an important development in the country’s next phase of FMCG and retail distribution.