Swiggy is divesting its wholesale logistics arm, Lynk, to Trustroot (the parent company of Udaan) in a transaction valued at approximately ₹500 crore. The company will receive a 3.2% stake in the B2B platform through an all-stock swap and additional cash investment. This move is part of Swiggy's broader strategy to offload capital-heavy assets and focus on its core food delivery and quick-commerce operations.
Swiggy Limited has announced a strategic shift by deciding to exit its wholesale distribution business, Lynk Logistics. The company will transfer its entire stake in the unit to Singapore-based Trustroot Internet, which operates the business-to-business platform Udaan. This transaction, valued at approximately $52.35 million or roughly ₹500 crore, marks a significant change in how the food delivery giant manages its operational portfolio.
Simplifying the Balance Sheet
The divestment is part of a larger plan to simplify the company’s structure. By offloading the wholesale logistics arm, Swiggy is moving away from a capital-heavy distribution model. These operations, while part of the company's ecosystem, require significant spending on infrastructure and supply chain management. For the fiscal year ending March 31, 2026, this unit contributed 2.90% to Swiggy’s total consolidated revenue and held roughly 2.73% of the group’s net assets. By exiting this segment, the company aims to reduce the weight of non-core assets on its balance sheet, allowing it to direct more resources toward its primary strengths in food delivery and quick commerce services like Instamart.
Transaction Structure and Investment
The deal is structured as an all-stock transaction. In exchange for the Lynk business, Swiggy Networks, a subsidiary of the company, will receive 166,534 Series R Compulsorily Convertible Preference Shares in Trustroot. This will grant Swiggy a 2.8% equity stake in the platform. Additionally, Swiggy is committing a primary equity investment of ₹75 crore into Trustroot, which will increase its total holding in the Udaan parent company to approximately 3.2%. The company has stated that this is an arm's length transaction, meaning it is conducted on fair market terms independent of the promoter group.
Looking Ahead
The transition is currently pending standard regulatory approvals and closing conditions, with the parties expecting to complete the process by October 22, 2026. Once the deal is finalized, Lynk Logistics will no longer be a subsidiary of the Swiggy group. For investors, the focus will now shift to how effectively this leaner operational structure impacts the company's margins and cash flow in the coming quarters. The key monitorable will be whether this reduction in capital-intensive distribution assets allows the company to improve its core profitability and operational efficiency over the long term.