M&A

M&A

Swiggy to sell retail distribution unit Lynk to Udaan for Rs.500-Cr, acquire 3.2% stake in B2B e-com

Inc42  

Publicly listed Swiggy’s subsidiary, Swiggy Networks, has entered into a pact with the B2B (business-to-business) e-commerce company Udaan to sell its Chennai-based retail distribution platform, Lynk , in a share-swap transaction. The deal values the Lynk business at INR 500 crore.Founded in 2015 by Abinav Raja and Shekhar Bhende, Lynk operates a distribution platform connecting FMCG brands with retailers. Swiggy acquired Lynk in 2023 to expand its presence in the food and grocery retail sector. Swiggy Networks will now transfer its entire shareholding in Lynks Logistics to Trustroot Internet, the Singapore-based parent entity of Udaan.Trustroot Internet will issue 1.67 lakh Series R compulsorily convertible preference shares (CCPS) to Swiggy Networks at USD 314.40 per share. These shares, valued at USD 52.37 million, will grant Swiggy a 2.8% stake in Udaan. Additionally, Swiggy will invest INR 75 crore in primary capital into Udaan for a further 0.4% stake, resulting in a total shareholding of approximately 3.2%.Swiggy plans to use this divestment to focus on its core operations while maintaining exposure to the B2B distribution sector through its minority stake in Udaan.

For FY25, Lynk Logistics had reported about INR 0.08 Cr in Net Loss.