At the proposed issue price, Udaan is valued at nearly $1.9 billion, which works out to around ₹17,953 crore. The company’s previous valuation was about $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 retail distribution business fully owned by Swiggy, through an all-stock transaction. The deal values Lynk 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 a price of $314.4 each. The shares are worth around $52.4 million in total and will be given in exchange for Swiggy Networks’ entire shareholding in Lynks Logistics, according to disclosures filed by Swiggy with the stock exchanges on Monday. Following the transaction, Swiggy will own approximately 2.8% of Udaan. It will also make a separate primary equity investment of ₹75 crore in Trustroot, giving it another 0.4% and taking its overall stake to roughly 3.2%.
Based on the issue price, Udaan’s valuation stands at close to $1.9 billion, or approximately ₹17,953 crore. The company was last valued at around $1.75 billion in its Series E funding round in January 2024.
The business being sold generated ₹668 crore in revenue in FY26, accounting for 2.90% of Swiggy’s consolidated revenue. According to the disclosures, the business had net assets worth ₹500 crore as of March 31, 2026. It is currently part of Swiggy Networks and will first be transferred into Lynks Logistics before the shares are transferred to Udaan. Lynks Logistics is a step-down subsidiary that recorded 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 acquired Lynk in July 2023 for an undisclosed amount after buying out the holdings of The Ramco Cements and Ramco Industries. The acquisition marked Swiggy’s entry at the time into India’s food and grocery retail distribution market. Founded in 2015 by Abinav Raja and Shekhar Bhende, Lynk works as an authorised distributor for FMCG brands and serves a network of more than 100,000 retail stores. Bengaluru, Hyderabad, Chennai and Kolkata together generate around 75% of its revenue.
For Udaan, Lynk brings established relationships with brands and wider access to retailers across four key metro markets. The acquisition comes as Udaan continues to push its own-label products. The company said private labels account for around 15-25% of staples sales across the cities where it operates.
Udaan said its revenue grew at a CAGR of about 25% over the 10 quarters from Q4 CY23 to Q1 CY26. During that period, its contribution margin improved by nearly 500 basis points, while Ebitda burn dropped by around 70%. The company added that Bengaluru, its biggest market, is 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.
The deal could also lead to commercial cooperation between the two companies, according to sources, with sourcing emerging as the most immediate area being considered. Udaan buys FMCG products and staples on a national scale and has direct relationships with brands, which could help Swiggy secure better terms for Instamart inventory. Swiggy’s restaurant partners regularly buy staples, edible oil, fruits and vegetables, and packaging each week, and this is a segment that Udaan already serves.
The acquisition follows Udaan’s $160-million recapitalisation in July. The financing included fresh equity, new debt and the conversion of a portion of its outstanding convertible bonds. Lightspeed Venture Partners, M&G Investments and Moonstone Capital backed the transaction, while BlackRock provided about $45 million in private credit.
This is Udaan’s second acquisition in the distribution business in just over a year. In July 2025, the company bought retail technology startup ShopKirana through an all-stock deal. Udaan also began its reverse flip from Singapore to India in March ahead of its planned listing.
The transaction is subject to customary closing conditions and regulatory approvals. Kotak Investment Banking advised udaan on the deal.