INDIA —Business-to-business e-commerce platform Udaan has executed a definitive agreement to acquire LYNK Logistics from food delivery and quick-commerce company Swiggy for a total consideration of INR 5 billion. The acquisition will be structured through an issue of preference shares in Udaan's parent company, Trustroot Internet Pvt Ltd, giving Swiggy a 2.8 percent equity stake. In addition, Swiggy will inject INR 750 million in fresh primary equity into Trustroot Internet to secure an extra 0.4 percent equity holding upon completion of customary regulatory approvals.
Udaan, operated by Trustroot Internet, is an Indian business-to-business marketplace connecting small manufacturers, wholesalers, and retailers through integrated logistics, supply chain, and trade financing services. Swiggy is a major consumer technology platform operating hyper-local delivery, quick-commerce, and restaurant aggregation networks across urban centers. LYNK Logistics operates a tech-enabled retail distribution network with heavy density across southern and eastern commercial hubs, generating roughly 75 percent of its revenue from Bengaluru, Hyderabad, Chennai, and Kolkata.
This consolidation follows a broader financial recapitalization where Udaan raised USD 160 million in structured debt, equity, and private credit financing from institutional backers. Operating metrics show steady fiscal progress for Udaan, with quarterly revenues achieving a 25 percent compound annual growth rate from late 2023 through early 2026. Over the same period, contribution margins expanded by nearly 500 basis points while operational burn declined by approximately 70 percent, driven in part by private-label merchandise accounting for up to 25 percent of staple commodity sales in core metropolitan zones.
Integrating LYNK Logistics provides immediate route-to-market scale across densely populated urban centers, enhancing unit economics for regional FMCG distribution networks. The strategic equity alignment allows Swiggy to maintain upside exposure to the wholesale distribution segment without managing capital-intensive physical logistics. For institutional investors and retail suppliers, the deal signals accelerating consolidation within India's digital wholesale ecosystem as major platforms streamline operational infrastructure ahead of prospective public market offerings.
