The transaction, based on the proposed issue price, values Udaan at nearly $1.9 billion, or around ₹17,953 crore. The company had last been valued at approximately $1.75 billion during its Series E funding round in January 2024.
Udaan, a B2B commerce platform, announced on Monday that it will acquire Lynk Logistics, the retail distribution arm fully owned by Swiggy, through an all-stock deal that values the business at ₹500 crore.
Under the agreement, Trustroot Internet, Udaan’s parent company, will issue 166,534 Series R compulsorily convertible preference shares to Swiggy Networks at $314.4 per share. The shares will be worth roughly $52.4 million in total and will be exchanged for Swiggy Networks’ entire stake in Lynks Logistics, according to disclosures filed by Swiggy with the stock exchanges on Monday. The share transfer will give Swiggy an estimated 2.8% ownership in Udaan. Swiggy will also make a separate primary equity investment of ₹75 crore in Trustroot, which will provide it with an additional 0.4% stake and increase its total holding to about 3.2%.
At the stated share issue price, Udaan’s valuation stands at close to $1.9 billion, equivalent to approximately ₹17,953 crore. The company’s previous valuation was around $1.75 billion in its Series E financing round in January 2024.
The business that is being sold reported ₹668 crore in revenue during FY26, which accounted for 2.90% of Swiggy’s consolidated revenue. Its net assets were valued at ₹500 crore as of March 31, 2026, according to the disclosures. The business currently operates within Swiggy Networks and will first be transferred to Lynks Logistics before the shares are handed over. Lynks Logistics is a step-down subsidiary that reported no revenue in FY26 and had a negative net worth of ₹11 lakh. Swiggy said it expects the transaction to be completed by October 22, 2026.
Swiggy had bought Lynk in July 2023 for an undisclosed sum after acquiring 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 market. Lynk was founded in 2015 by Abinav Raja and Shekhar Bhende and operates as an authorised distributor for FMCG brands through a network of more than 100,000 retail stores. Around 75% of its total revenue is generated from Bengaluru, Hyderabad, Chennai and Kolkata.
For Udaan, the addition of Lynk provides stronger brand connections and deeper access to retail stores across four major metropolitan markets at a time when the company is expanding its own-label portfolio. Udaan said private labels currently make up 15-25% of staples sales across the cities where it has operations.
Udaan also said that its revenue increased at a CAGR of approximately 25% over the 10 quarters between Q4 CY23 and Q1 CY26. During this period, its contribution margin improved by nearly 500 basis points, while Ebitda burn dropped by around 70%. The company further said that Bengaluru, which is its largest market, is now 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.
Sources said the transaction could also create opportunities for commercial cooperation between Swiggy and Udaan, with sourcing currently being considered the most immediate area. Udaan purchases FMCG goods and staples at a national scale through direct relationships with brands, which could help Swiggy secure better terms for inventory supplied to Instamart. Swiggy’s restaurant partners, which buy staples, edible oil, fruits and vegetables, and packaging materials every week, are also part of a customer segment that Udaan already serves.
The deal comes after Udaan completed a $160-million recapitalisation in July. The transaction included fresh equity, additional debt and the conversion of a portion of its outstanding convertible bonds. Lightspeed Venture Partners, M&G Investments and Moonstone Capital backed the recapitalisation, while BlackRock provided about $45 million in private credit.
This marks Udaan’s second acquisition in the distribution space in slightly more than a year. The company purchased retail technology startup ShopKirana in July 2025 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 conditions and required regulatory approvals. Kotak Investment Banking advised udaan on the deal.
