Indian B2B e-commerce platform Udaan has agreed to acquire Swiggy-owned LYNK Logistics in a ₹500 crore transaction, strengthening its retail distribution capabilities as the company moves toward a potential public listing.
The deal will be completed primarily through a share swap. Swiggy will receive approximately 2.8% of Udaan, while also making an additional ₹75 crore primary investment for another 0.4% stake. Once completed, Swiggy is expected to hold around 3.2% of Udaan.
The transaction values Udaan at roughly $1.9 billion and is expected to close by October 22, 2026, subject to customary conditions.
LYNK Logistics is a technology-driven retail distribution platform focused heavily on FMCG distribution. The company connects brands with a large network of retailers and brings Udaan additional distribution infrastructure, brand relationships, and merchant reach.
LYNK has particularly strong operations in:
Together, these four cities generate roughly 75% of LYNK’s revenue. For Udaan, the acquisition increases the density of its distribution network and strengthens its position in India’s large B2B commerce market.
Swiggy originally acquired LYNK in 2023 as part of an effort to enter India's retail distribution market. At the time, LYNK operated a network connecting FMCG companies with more than 100,000 retail stores across eight major Indian cities.
The business generated approximately ₹668 crore in revenue during FY26, according to reporting on the latest transaction. Udaan will now absorb those distribution relationships into its wider eB2B ecosystem.
The transaction also represents a strategic shift for Swiggy. Rather than continuing to operate LYNK directly, Swiggy is exchanging the business for a minority stake in Udaan.
This allows Swiggy to exit direct ownership of the retail distribution operation while retaining exposure to the broader Indian B2B commerce market. The resulting 3.2% stake also creates the possibility of future commercial collaboration between the two companies.
For Swiggy, the deal effectively converts a standalone B2B distribution asset into an investment in one of India's largest e-commerce wholesale platforms.
The acquisition comes at an important moment for Udaan. The company recently completed a $160 million recapitalization, combining fresh equity, new debt, and the conversion of existing convertible securities as it simplifies its capital structure ahead of a potential IPO. Existing investors, including Lightspeed and M&G, participated in the financing, while BlackRock committed additional private-credit funding.
The restructuring is intended to strengthen Udaan's balance sheet and support its long-term growth plans. The LYNK acquisition adds another layer to that strategy by expanding Udaan's physical distribution footprint before a possible public-market debut.
Indian B2B e-commerce has historically been difficult to scale profitably.
Platforms must manage:
Udaan has increasingly focused on improving operational efficiency rather than simply maximizing gross merchandise volume.
According to company figures cited in recent reporting, Udaan has delivered approximately 25% compound annual revenue growth while reducing EBITDA burn by around 70% over the last 10 quarters. The LYNK acquisition could help that strategy by adding established distribution routes and retailer relationships rather than requiring Udaan to build them organically.
LYNK's strength in FMCG distribution also complements Udaan's existing business. Fast-moving consumer goods represent one of the largest opportunities within Indian B2B commerce because millions of small shops require frequent replenishment of products such as:
These categories involve high transaction frequency and dense distribution networks. Udaan has also been expanding private-label products within staple categories, where its own brands reportedly account for around 15% to 25% of sales in some segments. A larger distribution network could help the company increase penetration of those products.
The acquisition is another sign of consolidation within India's technology-enabled wholesale and retail distribution sector. B2B commerce platforms initially competed heavily on retailer acquisition and discounts.
The market is now increasingly focused on:
Acquiring existing distribution networks can therefore be faster and more efficient than expanding city by city. For Udaan, LYNK provides immediate scale in several major urban markets.
The LYNK transaction is not Udaan's first move into acquiring distribution businesses. The company previously acquired ShopKirana, another technology-enabled B2B retail distribution platform, in 2025. Together, these deals show Udaan increasingly using acquisitions to consolidate retailer relationships and distribution infrastructure.
That approach could become especially important as the company prepares itself for public markets, where investors are likely to focus heavily on revenue quality, operating efficiency and the path to profitability.
The acquisition strengthens Udaan at three important levels. First, it expands the company's physical retail network. Second, it adds established relationships with FMCG brands. Third, it provides more distribution density in strategically important Indian cities.
For Swiggy, meanwhile, the transaction provides a cleaner way to participate in B2B commerce without continuing to operate the distribution business independently. The deal therefore reflects a broader maturation of India's e-commerce ecosystem.
Rather than every technology company building every capability internally, specialized assets are increasingly being consolidated around larger platforms.
The ₹500 crore LYNK Logistics deal comes as Udaan enters a potentially decisive period. Its recent $160 million recapitalization has strengthened its balance sheet. Its operating losses have been falling.
And the company is increasingly being discussed as an IPO candidate. Adding LYNK gives Udaan a larger distribution footprint and stronger access to FMCG retailers at precisely the moment it is trying to demonstrate a more scalable and sustainable business model. If completed as expected in October, the transaction could therefore become an important step in Udaan's evolution from a high-growth B2B marketplace into a more integrated Indian commerce and distribution platform.
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