Based on the issue price, the transaction places Udaan’s valuation at nearly $1.9 billion, equivalent to around ₹17,953 crore. The company’s previous valuation stood at approximately $1.75 billion during its Series E funding round in January 2024.
B2B commerce platform Udaan said on Monday that it will acquire Lynk Logistics, the wholly owned retail distribution business of Swiggy, through an all-stock transaction valuing Lynk at ₹500 crore.
Trustroot Internet, the parent company of Udaan, will allot 166,534 Series R compulsorily convertible preference shares to Swiggy Networks at a price of $314.4 per share. The shares, valued at around $52.4 million in total, will be issued in exchange for Swiggy Networks’ complete stake in Lynks Logistics, according to disclosures submitted by Swiggy to the stock exchanges on Monday. Following the transaction, Swiggy will hold approximately 2.8% of Udaan. In addition, Swiggy will make a separate primary equity investment of ₹75 crore in Trustroot, giving it another 0.4% stake and increasing its total ownership to around 3.2%.
At the stated issue price, Udaan is valued at close to $1.9 billion, or approximately ₹17,953 crore. Its previous valuation was around $1.75 billion when it completed its Series E funding round in January 2024.
The business being divested generated ₹668 crore in revenue during FY26, representing 2.90% of Swiggy’s consolidated revenue, while its net assets were valued at ₹500 crore as of March 31, 2026, according to the disclosures. The business is currently housed under Swiggy Networks and will first be transferred to Lynks Logistics, a step-down subsidiary that recorded no revenue and had a negative net worth of ₹11 lakh in FY26, before the shares are transferred. Swiggy said it expects the transaction to be completed by October 22, 2026.
Swiggy acquired Lynk in July 2023 for an undisclosed consideration after purchasing the stakes held by The Ramco Cements and Ramco Industries. The acquisition marked Swiggy’s entry at the time into India’s food and grocery retail distribution sector. Lynk was founded in 2015 by Abinav Raja and Shekhar Bhende and operates as an authorised distributor for FMCG brands through a network covering more than 100,000 retail stores. Around 75% of its revenue comes from Bengaluru, Hyderabad, Chennai and Kolkata.
For Udaan, the acquisition of Lynk adds established brand partnerships and greater retail penetration across four major metropolitan markets at a time when the company is expanding its own-label business. Udaan said private labels currently account for 15-25% of staples sales across the cities where it operates.
Udaan also said its revenue increased at a compound annual growth rate of around 25% over the 10 quarters between Q4 CY23 and Q1 CY26. During the same period, its contribution margin improved by nearly 500 basis points, while Ebitda burn declined by about 70%. The company added that Bengaluru, its biggest market, has become Ebitda profitable.
“The acquisition of Lynk further strengthens our business and expands our presence across some of India’s most important consumption markets,” said Vaibhav Gupta, co-founder and CEO, Udaan.
“We are firm believers in the large B2B opportunity that exists in India, and in Udaan’s position as the category creator in this space,” said Rahul Bothra, CFO, Swiggy, adding that the additional primary capital investment of ₹75 crore reflects Swiggy’s continued confidence in the space.
According to sources, the deal could also create opportunities for commercial cooperation between Udaan and Swiggy, with sourcing emerging as the most immediate area under consideration. Udaan purchases FMCG products and staples at a national level through direct relationships with brands, which could potentially help Swiggy secure better terms for inventory supplied to Instamart. Swiggy’s restaurant partners, which regularly purchase staples, edible oil, fruits and vegetables, and packaging materials each week, also represent a customer segment already served by Udaan.
The acquisition comes after Udaan completed a $160-million recapitalisation in July. The financing included fresh equity, new debt and the conversion of part of its outstanding convertible bonds. The round was supported by Lightspeed Venture Partners, M&G Investments and Moonstone Capital, while BlackRock provided approximately $45 million in private credit.
This will be Udaan’s second acquisition in the distribution segment in a little over a year. In July 2025, the company acquired retail technology startup ShopKirana through an all-stock transaction. Udaan also began the process of reverse flipping its domicile from Singapore to India in March as it prepares for a planned stock market listing.
The transaction remains subject to customary closing requirements and necessary regulatory approvals. Kotak Investment Banking acted as adviser to udaan on the deal.
