Udaan to buy Swiggy’s Lynk Logistics for ₹500 crore, issuing shares to Swiggy

New Delhi, Sep 7: B2B platform udaan on Monday announced the acquisition of Lynks Logistics Ltd, a step-down wholly owned subsidiary of Swiggy, for Rs 500 crore in a deal that would see the food delivery and quick commerce major pick a cumulative 3.2 per cent stake in udaan.udaan acquires Lynks LogisticsAccording to a statement, the transaction will be settled through the issuance of preference equity shares to Swiggy in Trustroot Internet (TIPL), which is the parent entity of udaan.As per the deal, Swiggy will acquire nearly 2.8 per cent stake in udaan and make a primary equity investment of Rs 75 crore in TIPL for an additional about 0.4 per cent stake in udaan.In a regulatory filing, Swiggy said its wholly owned subsidiary Swiggy Networks Ltd has entered into an agreement for the sale of its entire shareholding in Lynks Logistics Ltd, a step-down wholly owned subsidiary of the company, to udaan's parent firm Trustroot Internet Pvt Ltd (TIPL) through a share swap."We wish to inform that Swiggy Networks Ltd, a wholly owned subsidiary of the company, has entered into a share acquisition agreement and a deed of adherence-cum-second amendment agreement to the amended and restated Series G shareholders' agreement, dated September 7, 2026, for the sale of its entire shareholding in Lynks Logistics Ltd, a step-down wholly owned subsidiary of the company," Swiggy said.Share swap transaction detailsThe transaction will be undertaken by way of a share swap, under which Swiggy Networks Ltd will transfer 100 per cent of the issued and outstanding share capital of Lynks to TIPL.As consideration for the transfer, TIPL will issue and allot to Swiggy 166,534 Series R Compulsorily Convertible Preference Shares (CCPS) at an issue price of USD 314.40 per CCPS.The sale/disposal is expected to be completed by October 22, 2026, subject to the fulfilment of the conditions precedent and other terms set out in the transaction documents.India, Bangladesh Seek To Strengthen Cultural Ties During 'Nazrul Borsho' CelebrationsSwiggy invests in udaanMeanwhile, udaan announced the acquisition of LYNK Logistics Ltd (LYNK), Swiggy's wholly owned, technology-driven retail distribution platform, for Rs 500 crore."The transaction will be settled through the issuance of preference equity shares to Swiggy in Trustroot Internet Pvt Ltd (TIPL), the parent entity of udaan. As part of the transaction, Swiggy will acquire about 2.8 per cent stake in udaan and make a primary equity investment of Rs 75 crore in TIPL for an additional about 0.4 per cent stake in udaan," udaan stated.According to the company, Swiggy's investment reflects confidence in India's long-term eB2B opportunity, udaan's market leadership and the significant progress the company has made in strengthening its business fundamentals.Companies highlight growth plansudaan Co-Founder and CEO Vaibhav Gupta said, "The acquisition of LYNK further strengthens our business and expands our presence across some of India's most important consumption markets. Together, these developments position udaan strongly for its next phase of growth and our ambition to build a technology-led distribution network for India’s retail ecosystem."Also Watch:Swiggy Ltd CFO Rahul Bothra said, "Bringing LYNK together with udaan, the market leader, combines complementary capabilities with udaan's scale and technology-led platform serving India's retail ecosystem. As part of this transaction, we are also investing Rs 75 crore in primary capital into udaan, reflecting our continued confidence in the space. We're confident this brings LYNK's brands and retail partners a stronger platform to grow on, and we look forward to seeing udaan build on this in its next phase of growth."The acquisition of LYNK will further strengthen udaan's distribution platform, bringing complementary distribution capabilities, brand relationships and retail networks.Bengaluru, Hyderabad, Chennai, and Kolkata collectively contribute about 75 per cent of LYNK's revenue, giving udaan greater depth across important markets and complementing its cluster-led operating model.(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)

As per the deal, Swiggy would take a 2.8% stake in Udaan as part of the transaction and additionally, the company would also invest ₹75 crore in primary equity in Udaan for an additional ~0.4% stake