Udaan to acquire Swiggy’s Lynk Logistics for Rs 500 Cr
The transaction involves a share swap agreement following which Swiggy will have a minority stake in Udaan.
Food delivery and quick commerce company Swiggy will sell its B2B distribution business Lynk Logistics to Udaan at an enterprise value of Rs 500 crore. The transaction will also see Swiggy picking up a minority stake in Udaan.
In a notice to the stock exchanges, Swiggy said the transaction is proposed to be undertaken through a sharp swap wherein Udaan will allot 166,534 Series R compulsorily convertible preference shares (CCPS) at a price of $314.40 per CCPS, which works out to a stake of around 2.8%. Swiggy will also invest Rs 75 crore as primary equity into Udaan, translating into a 0.4% stake. Both the transactions are expected to give Swiggy a total stake of 3.2% in Udaan.
The deal strengthens Udaan's distribution network via Lynk’s own setup and partnerships with third-party players and helps expand Udaan’s presence in key markets.
Swiggy transfer's of its retail distribution business was executed with Trustroot Internet Private Limited, the Singapore headquartered holding company of Udaan.
Swiggy had acquired logistics startup Lynk in 2023 to enhance its retail distribution network. The company's net loss narrowed to Rs 791 crore in the first quarter of FY27, from a loss of Rs 1,197 crore in the year-ago period. Revenue rose to Rs 6,812 crore for the first quarter, compared to Rs 4,961 crore a year ago, at a growth of 37%.
In the first quarter, the largest contributor to Swiggy's revenues was the B2B segment, which registered a 41.4% year-on-year growth at Rs 3,195 crore. The food delivery business grew 22.66% YoY to Rs 2,208 crore.
In July this year, Udaan secured $160 million in a financing round through the issuance of fresh equity and debt. The proposed transaction included an infusion of fresh capital from existing equity shareholders, alongside a new investor, the company said in a statement.