Home / Business and Economy / Swiggy Sells Lynk Logistics to Udaan for Rs 500 Crore
Swiggy Sells Lynk Logistics to Udaan for Rs 500 Crore
7 Sep
Summary
- Swiggy's Lynk Logistics acquired by Udaan for Rs 500 crore.
- Swiggy receives ~2.8% stake in Udaan, plus Rs 75 crore investment.
- Udaan expands market presence with Lynk's distribution network.
Swiggy has finalized the sale of its retail distribution business, Lynk Logistics, to the eB2B platform Udaan for Rs 500 crore. This strategic deal will significantly enhance Udaan's market reach by incorporating Lynk's established distribution infrastructure and retail connections.
As part of this transaction, Swiggy is set to receive approximately a 2.8% stake in Udaan, represented by preference equity shares. Furthermore, Swiggy will inject Rs 75 crore as a primary equity investment into Udaan, securing an additional 0.4% stake.
Udaan's acquisition of Lynk Logistics aims to leverage the latter's strong presence in key consumption markets, including Bengaluru, Hyderabad, Chennai, and Kolkata, which collectively account for about 75% of Lynk's revenue. Lynk's network of over 100,000 retail stores and its relationships with leading FMCG brands will be integrated into Udaan's platform.
This move aligns with Udaan's ongoing efforts to improve financial performance, which has seen significant revenue growth and improved contribution margins. The acquisition is expected to strengthen Udaan's competitive position within India's dynamic retail distribution landscape.
