At the proposed issue price, Udaan is valued at around $1.9 billion, or nearly ₹17,953 crore. The company was previously valued at about $1.75 billion during its Series E funding round in January 2024.
B2B commerce platform Udaan said on Monday that it will acquire Lynk Logistics, the retail distribution business fully owned by Swiggy, through an all-stock deal. The transaction values Lynk at ₹500 crore.
As part of the deal, Trustroot Internet, the parent company of Udaan, will issue 166,534 Series R compulsorily convertible preference shares to Swiggy Networks. Each share will be priced at $314.4, taking the total value to around $52.4 million. In return, Swiggy Networks will transfer its entire shareholding in Lynks Logistics, according to disclosures made by Swiggy to the stock exchanges on Monday. The deal will give Swiggy an estimated 2.8% stake in Udaan. Swiggy will also separately invest ₹75 crore as primary equity in Trustroot, which will give it an additional 0.4% stake and take its overall holding to roughly 3.2%.
Based on the issue price, Udaan’s valuation comes to nearly $1.9 billion, or approximately ₹17,953 crore. Its last reported valuation was around $1.75 billion when the company raised its Series E round in January 2024.
The business being sold generated ₹668 crore in revenue in FY26, contributing 2.90% to Swiggy’s consolidated revenue. According to the disclosures, the business also had net assets of ₹500 crore as of March 31, 2026. It is currently housed under Swiggy Networks and will first be transferred to Lynks Logistics before the ownership changes hands. Lynks Logistics is a step-down subsidiary that reported no revenue in FY26 and had a negative net worth of ₹11 lakh. Swiggy said it expects the sale to be completed by October 22, 2026.
Swiggy had acquired Lynk in July 2023 for an undisclosed amount after buying out The Ramco Cements and Ramco Industries. At that time, the acquisition marked Swiggy’s entry into India’s food and grocery retail distribution market. Lynk was founded in 2015 by Abinav Raja and Shekhar Bhende. It works as an authorised distributor for FMCG brands and connects with a network of more than 100,000 retail stores. Bengaluru, Hyderabad, Chennai and Kolkata together account for around 75% of the company’s revenue.
For Udaan, the acquisition brings established brand relationships along with stronger retail reach across four major metro markets. This comes at a time when Udaan is also increasing its focus on its own labels. The company said private labels currently contribute around 15-25% of staples sales across the cities where it operates.
Udaan said its revenue grew at a CAGR of around 25% across the 10 quarters between Q4 CY23 and Q1 CY26. During the same period, its contribution margin improved by nearly 500 basis points, while Ebitda burn came down by about 70%. The company also said Bengaluru, its biggest market, is now Ebitda profitable.
“The acquisition of Lynk further strengthens our business and expands our presence across some of India’s most important consumption markets,” said Vaibhav Gupta, co-founder and CEO, Udaan.
“We are firm believers in the large B2B opportunity that exists in India, and in Udaan’s position as the category creator in this space,” said Rahul Bothra, CFO, Swiggy, adding that the additional primary capital investment of ₹75 crore reflects Swiggy’s continued confidence in the space.
Sources said the deal could also open the door for commercial cooperation between Udaan and Swiggy, with sourcing currently seen as the most immediate area of opportunity. Udaan purchases FMCG products and staples on a national scale and works directly with brands. This could help Swiggy get better terms while sourcing inventory for Instamart. Swiggy’s restaurant partners also buy staples, edible oil, fruits and vegetables, and packaging materials every week, which is a customer segment Udaan already serves.
The acquisition comes after Udaan completed a $160-million recapitalisation in July. The transaction included fresh equity, new debt and the conversion of part of its outstanding convertible bonds. Lightspeed Venture Partners, M&G Investments and Moonstone Capital backed the recapitalisation, while BlackRock provided around $45 million in private credit.
This will be Udaan’s second acquisition in the distribution business in a little more than a year. In July 2025, the company bought retail technology startup ShopKirana through an all-stock deal. Udaan also began the process of reverse flipping from Singapore to India in March as it prepares for a planned listing.
The transaction remains subject to customary closing conditions and regulatory approvals. Kotak Investment Banking advised udaan on the deal.