Bengaluru (Karnataka) [India], September 7 (ANI): Business-to-business e-commerce platform udaan will acquire Swiggy-owned LYNK Logistics for Rs 500 crore, while Swiggy will become a shareholder in udaan with a stake of about 3.2 per cent following the transaction, according to a company press release issued on Monday.
The acquisition will be settled through the issuance of preference shares to Swiggy in Trustroot Internet Private Limited (TIPL), the parent entity of udaan. Swiggy will receive about a 2.8 per cent stake in udaan as part of the transaction and will separately invest Rs 75 crore in fresh equity in TIPL for an additional stake of around 0.4 per cent.
Commenting on the deal, udaan Co-Founder and CEO Vaibhav Gupta said, “This deal is a strong endorsement of the huge eB2B opportunity and the progress udaan has made in building an efficient and sustainable business.”
“We have remained focused on strengthening our fundamentals, improving unit economics and demonstrating the scalability of our cluster-led operating model,” Gupta said, adding that the acquisition would expand udaan’s presence across key consumption markets.
LYNK is Swiggy’s wholly owned technology-driven retail distribution platform. According to the release, Bengaluru, Hyderabad, Chennai and Kolkata together account for around 75 per cent of LYNK’s revenue. The acquisition is expected to add LYNK’s distribution capabilities, brand relationships and retail network to udaan’s existing platform.
Swiggy Chief Financial Officer Rahul Bothra said the company sees a large business-to-business opportunity in India.
“We are firm believers in the large B2B opportunity that exists in India, and in udaan's position as the category creator in this space,” 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.”
The transaction comes after udaan recently completed a USD 160 million recapitalisation exercise comprising fresh equity, new debt and debt-to-equity conversion by Lightspeed Venture Partners, M&G Investments and Moonstone Capital. The exercise also included about USD 45 million of private credit financing, the release said.
udaan said its revenue grew at a compound annual growth rate of about 25 per cent over the 10 quarters from the fourth quarter of calendar year 2023 to the first quarter of 2026. During the period, its contribution margin improved by nearly 500 basis points and EBITDA burn declined by around 70 per cent.
The acquisition remains subject to customary closing conditions and applicable regulatory approvals. Kotak Investment Banking acted as financial adviser to udaan on the transaction. (ANI)
udaan to acquire Swiggy-owned LYNK Logistics for Rs 500 crore; Swiggy to take about 3.2% stake
