udaan acquires LYNK Logistics for Rs 500 crore; Swiggy to take 3.2% stake

eB2B platform udaan on Monday announced the acquisition of LYNK Logistics, Swiggy’s wholly owned technology-driven retail distribution platform, for Rs 500 crore, as it seeks to strengthen its distribution network and move closer to sustainable profitability and a potential public market listing.

The transaction will be settled through the issuance of preference shares to Swiggy in Trustroot Internet Pvt Ltd (TIPL), the parent company of udaan. As part of the deal, Swiggy will acquire about 2.8% stake in udaan. Swiggy will also invest an additional Rs 75 crore in primary equity in TIPL for a further 0.4% stake.

The deal comes shortly after udaan completed a $160 million recapitalisation involving fresh equity, new debt and debt-to-equity conversion by Lightspeed Venture Partners, M&G Investments and Moonstone Capital. The exercise included about $45 million in private credit financing from a global investment management firm.

udaan said its operating and financial performance has improved steadily over the past 10 quarters. Its revenue grew at a compound annual growth rate of about 25% between Q4 CY23 and Q1 CY26, while its contribution margin improved by nearly 500 basis points and EBITDA burn declined by around 70%.

The company has also been scaling higher-margin businesses, with private labels accounting for 15-25% of Staples sales across its operating cities. Bengaluru, its largest operating market, has achieved EBITDA profitability, udaan said.

The acquisition of LYNK will add distribution capabilities, brand relationships and retail networks to udaan's platform. Bengaluru, Hyderabad, Chennai and Kolkata together account for about 75% of LYNK's revenue, providing udaan greater depth in key consumption markets.

“Bringing LYNK together with udaan, the market leader, combines complementary capabilities with udaan's scale and technology-led platform serving India's retail ecosystem,” Swiggy CFO Rahul Bothra said.

udaan co-founder and CEO Vaibhav Gupta said the transaction was an endorsement of the eB2B opportunity in India and the progress the company had made in improving its fundamentals and unit economics.

The company said the recapitalisation had strengthened its balance sheet and financial flexibility, supporting its path towards profitable growth and “long-term public market readiness”.

The acquisition is subject to customary closing conditions and applicable regulatory approvals.