Udaan to acquire Swiggy’s B2B business Lynk for Rs 500 Cr

Swiggy is set to acquire Udaan's B2B distribution business, Lynk, for a whopping Rs 500 crore. As part of the deal, Swiggy will also take a minority stake in Udaan. The transaction will be carried out through a sharp swap, with Udaan allocating 166,534 Series R compulsorily convertible preference shares at $314.40 per share, giving Swiggy around 2.8% stake.

Additionally, Swiggy will invest Rs 75 crore as primary equity, securing a 0.4% stake. The combined investment will give Swiggy a total of 3.2% stake in Udaan. This acquisition aims to strengthen Udaan's distribution network through Lynk's existing setup and partnerships with third-party players. The deal expands Udaan's presence in key consumption markets.

Swiggy's retail distribution business was transferred to Trustroot Internet Private Limited, the Singapore-based holding company of Udaan. Last year, Swiggy acquired logistics startup Lynk to bolster its retail distribution network. Udaan's net loss narrowed to Rs 791 crore in Q1 FY27 from a loss of Rs 1,197 crore in the same period last year, while revenue grew to Rs 6,812 crore, up 37% YoY.

In Q1, the B2B segment contributed the most to Swiggy's revenues, growing 41.4% YoY to Rs 3,195 crore. Food delivery revenues rose 22.66% YoY to Rs 2,208 crore. In July, Udaan secured $160 million in a financing round through the issuance of fresh equity and debt.