Food delivery and quick-commerce major Swiggy Ltd has announced that its wholly owned subsidiary Swiggy Networks Ltd has entered into an agreement to sell its entire stake in Lynks Logistics Ltd to Trustroot Internet Pvt Ltd, the holding company of Udaan, India's major business-to-business e-commerce platform. According to Swiggy's filing, the transaction is being carried out through a share swap arrangement, with Swiggy Networks transferring 100% of the issued and outstanding share capital of Lynks Logistics to Trustroot Internet. As part of the deal, Trustroot Internet will issue and allot 166,534 Series R Compulsorily Convertible Preference Shares (CCPS) to Swiggy Networks at an issue price of USD 314.40 per share. The share acquisition agreement and deed of adherence-cum-second amendment agreement were entered into on September 7, 2026, with the transaction expected to close by October 22, 2026, subject to fulfillment of conditions precedent and other terms set out in the transaction documents.
The transaction involves a two-stage process where Swiggy Networks will first transfer its B2B authorized distribution business from Swiggy Networks to Lynks under a Business Transfer Agreement. Following this initial transfer, Swiggy Networks will then sell its entire shareholding in Lynks to Trustroot Internet through the proposed share swap arrangement. As reported by Swiggy's filing, Lynks is currently a step-down wholly owned subsidiary of Swiggy, and following the transaction, Lynks will cease to be a wholly owned subsidiary of Swiggy Networks and consequently a step-down wholly owned subsidiary of Swiggy. The restructuring will result in the business being transferred to Trustroot Internet, which is based in Singapore and is engaged along with its affiliates in the cash-and-carry wholesale trading business. Notably, Trustroot Internet does not belong to Swiggy's promoter, promoter group or group companies, and the transaction does not fall under related-party transactions.
According to Swiggy's filing, the B2B distribution business generated ₹668 crore in revenue for the financial year ended March 31, 2026, representing 2.90% of Swiggy's consolidated revenue. The business maintained net assets of ₹500 crore, equivalent to 2.73% of Swiggy's consolidated net worth as of March 31, 2026. However, Lynks itself reported nil revenue on a standalone basis for the same financial year and had a negative net worth of ₹11 lakh as of March 31, 2026. The acquisition will strengthen Udaan's distribution platform, bringing complementary distribution capabilities, brand relationships and retail networks. Bengaluru, Hyderabad, Chennai and Kolkata collectively contribute approximately 75% of LYNK's revenue, giving Udaan greater depth across important markets and complementing its cluster-led operating model. This strategic divestment allows Swiggy to focus entirely on its foodtech and high-growth Instamart quick-commerce vertical while eliminating direct operational exposure to a lower-margin, asset-heavy logistics business.
As part of the deal, Swiggy will retain exposure to the B2B distribution market through its enhanced strategic investment in Udaan. According to the latest reports, Swiggy will separately invest ₹75 crore in Udaan's primary investment, taking its total holding to approximately 3.2% stake in the B2B platform. Additionally, as part of the transaction, Swiggy will take a 2.8% stake in Udaan as part of the deal structure. Group Chief Financial Officer Rahul Bothra stated that the company remains a believer in the opportunity and described Udaan as a category creator in the space. "Bringing LYNK together with udaan, the market leader, combines complementary capabilities with Udaan's scale and technology-led platform serving India's retail ecosystem," Bothra said in a statement. He emphasized that the combination would give Lynk's brands and retail partners a stronger platform to grow. 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.
Shares of Swiggy closed 0.1% higher at ₹276.45 in Mumbai trading on Monday following the announcement. The deal follows Udaan's $160 million recapitalisation, which included fresh equity, new debt and debt-to-equity conversion. Udaan reported that revenue grew at an approximately 25% compound annual rate over the 10 quarters through the first quarter of calendar 2026, while its contribution margin improved by nearly 500 basis points and its EBITDA loss narrowed by about 70%. Udaan, 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. This strategic acquisition marks a significant shift in Swiggy's approach to B2B distribution, exiting direct operations while maintaining exposure through Udaan's platform. The transaction is expected to build on Udaan's recent recapitalisation exercise, comprising fresh equity, new debt and debt-to-equity conversion by Lightspeed Venture Partners, M&G Investments and Moonstone Capital, including approximately $45 million of private credit financing from a leading global investment management firm. The deal is subject to regulatory approvals, with Kotak Investment Banking advising Udaan on the transaction.
