MUMBAI: Swiggy is selling its retail distribution platform Lynk Logistics to B2B e-commerce startup Udaan, the companies said on Monday. As part of the deal, which has been structured as a share-swap transaction, Swiggy will acquire a 2.8% stake in Udaan.The food and grocery delivery major will also make a cash infusion of Rs 75 crore in the company, buying an additional 0.4% stake, taking its total shareholding in Udaan to 3.2%. The deal will value Lynk at Rs 500 crore.The development comes less than two months after Udaan struck a $160 million financing deal with existing and new investors, averting bankruptcy. Global creditors of the company had initiated insolvency proceedings against Udaan’s Singapore-based parent over a $170 million bond default. The startup, which plans to go public, claimed that the recapitalisation has boosted its balance sheet and it has achieved EBITDA profitability in its largest operating city, Bengaluru.“Bringing Lynk together with Udaan combines complementary capabilities with Udaan’s scale and technology-led platform serving India’s retail ecosystem,” said Rahul Bothra, CFO at Swiggy.Founded in 2015, Lynk was acquired by Swiggy through a share swap deal with Chennai-based Ramco Group in 2023.Udaan said the acquisition will strengthen its distribution platform and allow the firm to connect consumer brands with a wider network of retailers. Bengaluru, Hyderabad, Chennai and Kolkata collectively contribute nearly 75% of Lynk’s revenues, giving Udaan deeper access to key markets.
