Udaan will acquire Swiggy’s retail distribution platform Lynk Logistics in a share-swap transaction that values Lynk at Rs 500 crore, the companies said on Monday. Swiggy will receive a 2.8% stake in Udaan and invest an additional Rs 75 crore for another 0.4%, taking its total holding in the business to 3.2%.
The transaction brings Lynk’s distribution operations together with Udaan’s business-to-business e-commerce platform, which connects consumer brands with retailers. The companies said the deal would combine Lynk’s distribution capabilities with Udaan’s technology and scale across India’s retail ecosystem.
“Bringing Lynk together with Udaan combines complementary capabilities with Udaan’s scale and technology-led platform serving India’s retail ecosystem,” Swiggy chief financial officer Rahul Bothra said.
Lynk operates across several major urban markets, with Bengaluru, Hyderabad, Chennai and Kolkata collectively accounting for nearly 75% of its revenues. The acquisition will give Udaan deeper access to these markets and expand its ability to connect consumer brands with a wider network of retailers, according to the company.
The deal follows a period of financial pressure and restructuring for Udaan. Less than two months ago, the B2B e-commerce company announced a $160 million financing transaction involving existing and new investors. The financing came after global creditors initiated insolvency proceedings against Udaan’s Singapore-based parent over a $170 million bond default.
Udaan said the recapitalisation had strengthened its balance sheet and that the company had achieved EBITDA profitability in Bengaluru, its largest operating city. The company is also planning a public listing, although the announcement did not specify a timeline for the proposed initial public offering.
For Swiggy, the transaction involves the transfer of Lynk, which it acquired from Chennai-based Ramco Group through a share-swap deal in 2023. Swiggy’s remaining exposure to Udaan will be through its 3.2% stake, comprising the equity received for Lynk and the additional investment made in cash.
Lynk’s operations are focused on retail distribution, while Udaan provides a digital marketplace and supply-chain platform for business buyers and sellers. The combination is expected to give consumer brands access to a broader retailer base while extending Udaan’s presence in four important city markets.
The companies have not disclosed further details on the transaction’s completion schedule, the operational integration of Lynk or any changes to the brands and retailer relationships currently served by the two businesses. The next steps will involve bringing Lynk’s distribution network into Udaan’s platform and determining how the combined operation will be managed across its key markets.
