udaan to acquire Swiggy’s LYNK Logistics for ₹500 crore
The deal, subject to regulatory approvals, expands udaan’s B2B retail distribution in Bengaluru, Hyderabad, Chennai and Kolkata. Swiggy will receive about 2.8% in udaan through preference shares and invest ₹75 crore for an additional 0.4% stake.
What happened
Udaan · udaan will acquire Swiggy’s LYNK Logistics for ₹500 crore, expanding B2B retail distribution across Bengaluru, Hyderabad, Chennai and Kolkata. Swiggy
Key facts
- ₹500 crore acquisition value
- Swiggy to receive approximately 2.8% stake in udaan
- ₹75 crore fresh primary equity investment by Swiggy
- Additional 0.4% stake for Swiggy
- LYNK's four key markets account for roughly 75% of revenue
- $160 million recent recapitalisation
- Approximately $45 million private credit
- Revenue CAGR of around 25% over the last 10 quarters
- Nearly 500 basis-point contribution-margin improvement
- Roughly 70% reduction in EBITDA burn
Why this matters
The transaction illustrates a strategic asset-for-equity structure that lets Swiggy monetize a non-core B2B logistics business while enabling udaan to consolidate regional distribution scale.
What to watch
- Regulatory approval timing and any conditions attached to the transaction.
- Closing timeline, final transferred assets, employees, warehouses, customer contracts and liabilities.
- Customer-retention and order-volume trends in the four core LYNK cities during the first two quarters after closing.
- Changes in delivery cost per order, fill rates, on-time delivery and retailer repeat rates.
- Supplier terms and evidence of improved gross margins or working-capital efficiency.
- Swiggy and udaan announcements on operational partnerships beyond the equity transaction.
- Competitive discounting, credit extensions or distributor tie-ups by B2B commerce rivals and FMCG companies.
- Secure competition and other regulatory approvals while defining transition-service arrangements with Swiggy.
- Prioritize retention packages for LYNK's sales, supply-chain and category-management teams.
- Map overlapping retailers, suppliers, dark stores and warehouses to consolidate routes without disrupting service levels.
- Migrate LYNK customers onto udaan's catalog, credit, ordering and fulfillment systems in phased city-level rollouts.
- Use the combined network to negotiate improved FMCG, staples and private-label procurement terms.
- Explore commercial partnerships with Swiggy in food-service sourcing, merchant distribution and logistics capacity after closing.