B2B e-commerce firm Udaan has acquired LYNK Logistics from Swiggy in a deal valued at ₹500 crore. This transaction gives Swiggy a 3.2% stake in Udaan's parent, Trustroot Internet, while helping Swiggy refocus on its core food and quick-commerce businesses. For Udaan, the deal aims to strengthen its supply chain presence in key metropolitan areas.
B2B e-commerce platform Udaan has entered into a strategic agreement to acquire LYNK Logistics, a retail distribution subsidiary previously owned by Swiggy, in a deal valued at ₹500 crore. As part of the transaction, Swiggy will receive equity in Trustroot Internet, the parent entity of Udaan. Specifically, Swiggy will hold a 2.8% stake through preference equity shares, with an additional 0.4% stake acquired via a primary cash investment of ₹75 crore, bringing its total shareholding to 3.2%.
Strategic Shift for Swiggy and Udaan
For Swiggy, this exit from LYNK Logistics is part of a broader move to simplify its business operations and concentrate resources on its core areas: food delivery and its quick-commerce vertical, Swiggy Instamart. LYNK, which Swiggy had acquired in 2023, operated a distribution network that did not align with Swiggy’s primary consumer-facing strategies.
Conversely, the acquisition is a tactical move for Udaan to deepen its footprint in high-density consumption markets. The company plans to leverage LYNK’s existing infrastructure in cities including Bengaluru, Hyderabad, Chennai, and Kolkata. These regions reportedly account for a significant portion of LYNK’s total revenue. By absorbing this distribution network, Udaan intends to improve supply chain efficiency and better connect national consumer brands with smaller retail outlets.
Financial Context and Execution Risks
While the expansion highlights Udaan's intent to capture a larger share of the retail distribution market, the transaction occurs against a backdrop of financial transition for the company. Udaan is a private entity and is not listed on stock exchanges, but it has been under scrutiny regarding its capital structure. The company recently completed a $160 million recapitalization effort, which followed a period of financial stress earlier in 2026, including the restructuring of convertible notes that matured in June.
Udaan has reported operational improvements, including a 25% revenue compound annual growth rate over the last ten quarters and a reported 70% reduction in overall EBITDA burn. However, integration risk remains a key factor. Merging LYNK’s distribution systems, personnel, and brand partnerships into Udaan’s existing platform presents operational challenges. Furthermore, the eB2B sector is characterized by intense competition and low margins. Stakeholders and industry observers will be monitoring how Udaan manages this integration while maintaining the improved profitability metrics it has reported in recent quarters. The company's ability to utilize this new capacity effectively without increasing its financial burden will be critical to its long-term stability.