Acquisition · Commerce & Consumer Brands
Udaan acquires LYNK Logistics from Swiggy for ₹500 crore
By Startup Enthusiast ·
- Date
- Company
- Udaan
- What it does
- B2B e-commerce platform for retailers
- Kind
- Acquisition
- Amount
- ₹500 Cr
- Stage
- late
- Based in
- Bengaluru
- Founded
- 2016
What they do
Udaan is a business-to-business e-commerce platform connecting millions of small retailers, chemists, and hotels with wholesale suppliers across India
What happened
Udaan acquired the LYNK Logistics distribution business from Swiggy in a ₹500 crore deal involving a share swap and primary equity investment
Why it matters
This acquisition strengthens Udaan's retail distribution network as the company prepares for a potential public market debut
The details
- Udaan is acquiring the LYNK Logistics distribution business from Swiggy for a total consideration of ₹500 crore.
- The transaction involves Udaan issuing preference equity shares in its parent company, Trustroot Internet Private Limited, to Swiggy.
- Swiggy will receive a 3.2% stake in Udaan through a combination of the share swap and a ₹75 crore primary equity investment.
- The deal includes the transfer of Swiggy's B2B distribution business, which generated ₹668 crore in revenue during FY26.
- The acquisition is expected to close by 22 October 2026, pending regulatory approvals and customary closing conditions.
- Kotak Investment Banking served as the financial advisor to Udaan for this transaction.
The bigger picture
- Udaan is actively positioning itself for an IPO (initial public offering; the first sale of stock to the public).
- The company recently completed a $160 million recapitalization to improve its financial health and reduce debt.
- Udaan has significantly improved its EBITDA (earnings before interest, taxes, depreciation, and amortization) burn by 70% over the last ten quarters.
About the business
- Udaan operates a digital platform connecting small businesses like kiranas and chemists with manufacturers and brands.
- The platform offers wholesale pricing, private label brands, and business credit to millions of small businesses.
- Udaan maintains a wide catalog with over 1,600 SKUs (stock keeping units; unique items available for sale) across food, FMCG, and pharma.
- The company has achieved EBITDA profitability in its largest market, Bengaluru.
- LYNK Logistics, founded in 2015, specializes in technology-driven retail distribution and works with major FMCG companies.
What happens next
- Udaan continues to focus on public market readiness and IPO preparations.
The deal
- Type
- acquisition
Founders
- Vaibhav Gupta, Co-founder and CEO
- Sujeet Kumar, Co-founder
About Udaan
- Product
- B2B e-commerce platform
- Customers
- Small retailers, kiranas, and business buyers
- How it makes money
- Connects businesses to suppliers through a B2B marketplace and earns through transaction-based services and platform-led commerce.
- What sets it apart
- Broad distribution reach across many cities with strengthening supply chain and credit infrastructure.
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