Swiggy picks 3.2% stake in Udaan, sells B2B arm for ₹500 crore

Swiggy Ltd. is selling its entire stake in B2B distribution arm Lynk Logistics to the parent of commerce platform Udaan for ₹500 crore, as the food-delivery company shifts its exposure to the business through a stake in Udaan.

The transaction will give Swiggy an approximately 2.8% stake in Udaan. A separate ₹75 crore primary investment in Udaan will take its holding to about 3.2%, according to the company.

Swiggy Networks Ltd., a wholly owned subsidiary of Swiggy, signed the share acquisition agreement and related documents with Trustroot Internet Pvt. Ltd. on Sept. 7, the company said in a stock-exchange filing. The transaction is expected to close by Oct. 22, subject to customary conditions and regulatory approvals.

Under the deal, Swiggy Networks will transfer 100% of Lynk to Trustroot. In return, Trustroot will issue 166,534 Series R compulsorily convertible preference shares to Swiggy Networks at an issue price of $314.40 each.

Swiggy exits direct B2B distribution

The transaction marks a change in Swiggy’s approach to B2B distribution, a business it entered through the acquisition of Lynk in 2023. Swiggy had said at the time that Lynk would give it an entry into India’s retail distribution market through a technology-led platform.

Founded in 2015, Lynk works with fast-moving consumer-goods companies to distribute products to retail stores, using technology for warehousing, inventory management and logistics.

Swiggy completed the acquisition of Lynk in August 2023. The business was subsequently moved under Scootsy Logistics, another Swiggy subsidiary, with the operations transferred in December that year.

Lynk generated ₹668 crore in revenue in the year ended March 31, 2026, accounting for 2.9% of Swiggy’s consolidated revenue, according to Swiggy’s financial disclosures. Its net assets stood at ₹500 crore, or 2.73% of Swiggy’s consolidated net worth. Lynk reported nil standalone revenue and negative net worth of ₹11 lakh for the same period.

Udaan gets Lynk’s retail reach

Swiggy will retain exposure to the B2B distribution market through its stake in Udaan. Group Chief Financial Officer Rahul Bothra said the company remains a believer in the opportunity and described Udaan as a category creator in the space.

“Bringing LYNK together with udaan, the market leader, combines complementary capabilities with Udaan's scale and technology-led platform serving India's retail ecosystem,” Bothra said in a statement. He said the combination would give Lynk’s brands and retail partners a stronger platform to grow.

Udaan said the acquisition would strengthen its distribution network through Lynk’s brand relationships and retail reach. Bengaluru, Hyderabad, Chennai and Kolkata together account for about 75% of Lynk’s revenue, according to a separate statement.

The deal follows Udaan’s $160 million recapitalisation, which included fresh equity, new debt and debt-to-equity conversion. Udaan said revenue grew at an approximately 25% compound annual rate over the 10 quarters through the first quarter of calendar 2026, while its contribution margin improved by nearly 500 basis points and its EBITDA loss narrowed by about 70%.

Shares of Swiggy closed 0.1% higher at ₹276.45 in Mumbai trading on Monday.