Udaan is making a big move ahead of its IPO.
The Bengaluru-based B2B commerce platform has agreed to acquire LYNK Logistics from Swiggy in a share-swap deal valued at Rs 500 crore. The transaction was disclosed in a Bombay Stock Exchange filing on Monday, September 7.
The deal is expected to close by October 22, 2026, subject to regulatory approvals.
This isn’t just a logistics acquisition. It’s Udaan consolidating two complementary B2B distribution networks before it goes public while Swiggy gets a meaningful stake in a company heading toward an IPO instead of holding onto a business that was never quite its core focus.
What Is LYNK, and Why Did Swiggy Have It?
LYNK Logistics was founded in 2015 by Abinav Raja and Shekhar Bhende in Chennai. It works as an authorised distributor for FMCG companies, serving a network of more than 100,000 retail stores.
Swiggy acquired it from Ramco Cements and Ramco Industries in July 2023 as the food delivery company’s attempt to enter India’s food and grocery retail distribution market. The idea made some sense at the time. Swiggy’s restaurant partners regularly purchase staples, edible oil, fruits and vegetables, and packaging materials. LYNK connected brands to retailers doing exactly that kind of purchasing.
But LYNK was always a bit of an outlier in Swiggy’s portfolio. The business generated Rs 668 crore in revenue in FY26, about 2.9% of Swiggy’s consolidated revenue. It’s not a small number, but it’s not core to what Swiggy does either.
Selling it to Udaan makes strategic sense for both sides.
How the Deal Works
The structure is a share-swap, not a cash transaction.
Udaan’s parent company, Trusthoot Internet (also called Trustroot Internet Private Limited), will issue 1,66,534 Series R Compulsorily Convertible Preference Shares to Swiggy at $314.4 per share. Total value: approximately $52.4 million, or around Rs 500 crore.
In return, Swiggy transfers its entire holding in Lynks Logistics to Udaan.
On top of that, Swiggy will separately invest Rs 75 crore as primary equity in Udaan, giving it an additional 0.4% stake. Combined, Swiggy ends up with roughly 3.2% ownership in Udaan.
At the implied issue price, Udaan’s valuation comes out to approximately $1.9 billion, up from around $1.75 billion at its last Series E round in January 2024.
What Udaan Gets From This
Four cities, Bengaluru, Hyderabad, Chennai, and Kolkata, account for around 75% of LYNK’s revenue. These are exactly the south and east Indian markets where Udaan has been working to strengthen its cluster-led distribution model.
LYNK brings more than just geographic reach. It brings established relationships with FMCG brands and a network of over 100,000 retailers who trust it as a distributor. For Udaan, which already operates at scale on the technology side, absorbing a business with strong on-the-ground brand relationships fills a specific gap.
Vaibhav Gupta, Co-Founder and CEO of Udaan, described it as combining complementary capabilities. LYNK brings brand access. Udaan brings platform and scale. That is the pitch.
The timing matters too. Udaan completed a $160 million recapitalisation in July, involving Lightspeed Venture Partners, M&G Investments, and Moonstone Capital. Its revenue grew at a 25% CAGR between Q4 2023 and Q1 2026. EBITDA burn declined by around 70% over the same period. Contribution margins improved by nearly 500 basis points.
In other words, Udaan is cleaning up its financials, adding scale, and building toward a public listing in the best shape it can manage.
What Swiggy Gets From This
For Swiggy, this is a sensible exit from a business that was never really central to its strategy.
LYNK generated Rs 668 crore in revenue but was housed under a step-down subsidiary called Lynks Logistics, that recorded no revenue and had a negative net worth of Rs 11 lakh as of March 2026. The business being sold is the actual B2B distribution operation, which will be transferred to that entity before the deal closes.
By taking a 3.2% stake in Udaan instead of cash, Swiggy is betting that Udaan’s IPO will deliver a better return than holding onto LYNK would have. It’s a bet on Udaan’s valuation appreciation more than it is a statement about LYNK’s standalone value.
Rahul Bothra, CFO of Swiggy, acknowledged as much: “As part of this transaction, we are also investing Rs 75 crore in primary capital into Udaan, reflecting our continued confidence in the space.”
What This Means for India’s B2B Retail Logistics Space
The LYNK-Udaan deal is a consolidation play in a market that’s been fragmented for years.
India’s B2B retail distribution, which involves getting branded FMCG products from manufacturers to millions of kirana stores and small retailers, has been contested by multiple players. Udaan, JioMart B2B, Meesho, and regional distributors all operate in overlapping segments. None of them has a dominant national network.
This acquisition gives Udaan a stronger position in four major southern and eastern cities. It won’t end the fragmentation, but it moves Udaan closer to the kind of geographic and brand coverage that justifies a large-cap valuation at IPO.
For freight forwarders and logistics operators serving FMCG brands in these markets, the consolidation is worth noting. As B2B platforms like Udaan absorb more of the last-mile retail distribution role, the routing of FMCG supply chains increasingly flows through their networks. That changes who controls the logistics relationship and who sets the terms.
Bottom Line
Udaan buying LYNK from Swiggy is one of those deals that makes clear sense once you look at it from both sides. Udaan gets south and east India retail distribution strength and 100,000 retailer relationships ahead of its IPO. Swiggy exits a non-core business and gets an equity stake in a company heading toward a public listing.
The deal closes in October if approvals come through. By the time Udaan files its IPO prospectus, LYNK’s operations will be fully integrated into the platform.
For India’s B2B logistics and distribution market, this is consolidation in action.
