Udaan Acquires Swiggy's Lynk Logistics in Rs 500 Cr Deal
Udaan has agreed to acquire Lynk Logistics, the retail distribution arm of foodtech and quick commerce major Swiggy, for Rs 500 crore. The terms were not disclosed.
As part of the transaction, Swiggy will receive approximately 2.8% in Udaan via preference equity shares. It will separately invest Rs 75 crore in primary equity for an additional 0.4% stake, giving the company a combined holding in the eB2B platform.
Lynk operates a tech-led distribution network connecting leading FMCG brands to over 100,000 retail stores across eight cities. The acquisition folds Lynk’s brand relationships, distribution capabilities, and retail network into Udaan’s platform — with Bengaluru, Hyderabad, Chennai, and Kolkata alone contributing roughly 75% of Lynk’s revenue.
For a global buyer or investor watching India’s fragmented retail supply chain, the deal signals consolidation where it matters most: last-mile distribution depth in high-consumption urban clusters.
Udaan gains category coverage and brand relationships that are hard to build organically, while Swiggy sharpens its focus on core quick commerce and food delivery, converting a two-year-old B2B experiment into a meaningful minority position in a recapitalised platform.
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Udaan has been strengthening its operating base. Over the ten quarters through Q1 CY26, its revenue grew at a CAGR of around 25%, contribution margin improved by nearly 500 basis points, and EBITDA burn fell roughly 70%.
Its private labels now account for 15–25% of Staples sales in active cities, and Bengaluru, its largest market, has turned EBITDA profitable.
The deal follows Udaan’s $160 million recapitalisation, which included fresh equity, new debt, and debt-to-equity conversion from Lightspeed Venture Partners, M&G Investments, and Moonstone Capital, alongside roughly $45 million in private credit financing.
Swiggy had acquired Lynk in July 2023 via a share swap; the value of that transaction was not disclosed.
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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