At the proposed issue price, Udaan is valued at nearly $1.9 billion, or about ₹17,953 crore. The company had previously been valued at around $1.75 billion during its Series E funding round in January 2024.
B2B commerce company Udaan announced on Monday that it will purchase Lynk Logistics, the fully owned retail distribution unit of Swiggy, through an all-stock deal that values the business at ₹500 crore.
As part of the transaction, Udaan’s parent company, Trustroot Internet, will issue 166,534 Series R compulsorily convertible preference shares to Swiggy Networks at $314.4 per share. The total value of these shares is approximately $52.4 million. In return, Swiggy Networks will transfer its entire holding in Lynks Logistics, according to disclosures filed by Swiggy with the stock exchanges on Monday. The transaction will give Swiggy an estimated 2.8% stake in Udaan. Separately, Swiggy will invest ₹75 crore as primary equity in Trustroot, adding another 0.4% stake and taking its overall ownership to about 3.2%.
Based on the issue price, the transaction puts Udaan’s valuation at close to $1.9 billion, equivalent to nearly ₹17,953 crore. Its last reported valuation was approximately $1.75 billion following its Series E round in January 2024.
The business being transferred recorded revenue of ₹668 crore in FY26, accounting for 2.90% of Swiggy’s consolidated revenue. It also had net assets worth ₹500 crore as of March 31, 2026, according to the disclosures. The operation is currently part of Swiggy Networks and will first be moved into Lynks Logistics, a step-down subsidiary that reported zero revenue and a negative net worth of ₹11 lakh in FY26, before ownership is transferred. Swiggy expects the sale process to be completed by October 22, 2026.
Swiggy had purchased Lynk in July 2023 for an undisclosed amount by acquiring the holdings of The Ramco Cements and Ramco Industries. At the time, the acquisition marked Swiggy’s entry into India’s food and grocery retail distribution business. Lynk, founded in 2015 by Abinav Raja and Shekhar Bhende, works as an authorised distributor for FMCG companies and serves a network of more than 100,000 retail stores. Bengaluru, Hyderabad, Chennai and Kolkata together contribute around 75% of its revenue.
For Udaan, Lynk adds stronger relationships with brands and wider retail access across four major metro markets while the company continues to expand its own private-label products. According to Udaan, private labels currently contribute between 15% and 25% of staples sales across the cities where it operates.
Udaan said its revenue expanded at a CAGR of nearly 25% across the 10 quarters from Q4 CY23 through Q1 CY26. Over the same period, the company’s contribution margin improved by almost 500 basis points, while its Ebitda burn declined by around 70%. It also said Bengaluru, its biggest 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 lead to commercial partnerships between the two companies, with sourcing currently seen as the most immediate area of opportunity. Udaan purchases FMCG goods and staples on a national scale and maintains direct relationships with brands, which may help Swiggy secure better procurement terms for Instamart inventory. Swiggy’s restaurant partners also purchase staples, edible oil, fruits and vegetables, and packaging materials every week, and this is already a customer segment served by Udaan.
The transaction comes after Udaan completed a $160-million recapitalisation in July. The funding included new equity, fresh debt and the conversion of part of its outstanding convertible bonds. Lightspeed Venture Partners, M&G Investments and Moonstone Capital backed the recapitalisation, while BlackRock provided around $45 million in private credit.
This is Udaan’s second acquisition in the distribution sector in a little over one year. The company acquired retail technology startup ShopKirana in July 2025 through an all-stock deal. In March, Udaan also started the process of shifting its domicile from Singapore back to India ahead of a planned stock market listing.
The deal remains subject to standard closing conditions as well as regulatory approvals. Kotak Investment Banking served as adviser to udaan for the transaction.
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