Udaan to buy Swiggy’s LYNK Logistics for ₹500 crore

Udaan, the fast‑growing business‑to‑business e‑commerce platform, announced on Monday that it will acquire LYNK Logistics – the technology‑driven retail distribution arm of Swiggy – for a reported ₹500 crore. The move is not just a straight‑forward buy‑out; it also folds Swiggy into Udaan’s ownership structure, giving the food‑delivery giant a stake of about 3.2 % in Udaan’s parent, Trustroot Internet Private Limited (TIPL).

How does the math work? Swiggy will receive preference shares in TIPL that translate to roughly a 2.8 % holding. On top of that, the company plans to inject an additional ₹75 crore of fresh equity, nudging its total interest to around 0.4 % more – summing up to the 3.2 % figure.

“This deal is a strong endorsement of the huge eB2B opportunity and the progress Udaan has made in building an efficient and sustainable business,” said Vaibhav Gupta, Udaan’s co‑founder and CEO. He added that the acquisition will broaden Udaan’s footprint across key consumption markets, reinforcing the “cluster‑led” model that the firm has been championing.

For its part, Swiggy’s CFO Rahul Bothra emphasized the strategic fit. “We see a massive B2B opportunity in India, and Udaan is the category creator in this space. Combining LYNK’s distribution muscle with Udaan’s scale and tech platform creates a win‑win for the whole retail ecosystem,” he explained.

LYNK, which is wholly owned by Swiggy, currently drives a technology‑centric retail distribution network that contributes a sizable chunk of Swiggy’s non‑food revenue. Cities like Bengaluru, Hyderabad, Chennai and Kolkata together account for about three‑quarters of LYNK’s turnover, making the acquisition a sensible geographic expansion for Udaan.

The deal arrives on the heels of a robust financing round for Udaan. Earlier this year, the platform closed a USD 160 million recapitalisation that blended fresh equity, new debt and a debt‑to‑equity conversion, with participation from Lightspeed Venture Partners, M&G Investments and Moonstone Capital. The package also featured roughly USD 45 million of private credit.

Financially, Udaan has been on an upward trajectory. Over the ten‑quarter stretch from Q4 FY2023 to Q1 FY2026, its revenue grew at a compound annual growth rate of about 25 %. During the same period, the company’s contribution margin improved by nearly 500 basis points, while its EBITDA burn shrank by roughly 70 % – signs that the business is edging toward profitability.

As with any sizeable transaction, the acquisition remains subject to customary closing conditions and regulatory approvals. Kotak Investment Banking acted as financial adviser to Udaan on the deal.

Industry watchers see this as a clear signal that the B2B e‑commerce sector in India is maturing fast, with logistics and distribution capabilities becoming as critical as the digital marketplaces themselves. If the integration goes smoothly, Udaan could emerge as an even more formidable player, stitching together supply‑chain efficiencies across the country’s most dynamic retail corridors.