Udaan Acquires LYNK Logistics from Swiggy Ahead of IPO
Indian B2B e-commerce startup Udaan is acquiring retail distribution platform LYNK Logistics from Swiggy in a share-swap deal. The transaction strengthens Udaan's position ahead of its planned initial public offering.
B2B e-commerce startup Udaan is set to acquire LYNK Logistics, a retail distribution platform, from foodtech company Swiggy in a share-swap deal valued at Rs 500 crore (approximately $6 million USD). The transaction, announced via a filing with the Bombay Stock Exchange, is expected to bolster Udaan's market presence as it prepares for an Initial Public Offering (IPO).
Under the terms of the agreement, Udaan's parent company, Trusthoot Internet, will issue preference shares to Swiggy. Additionally, Swiggy will inject Rs 75 crore (approximately $9 million USD) in cash for a further stake, bringing its total ownership in Udaan to 3.2%.
LYNK Logistics connects consumer brands with over 100,000 small retail stores across eight Indian cities. Its acquisition is anticipated to enhance Udaan's ability to scale its operations and reach a wider network of retailers, particularly in key consumption markets.
The deal comes as Udaan actively prepares for its public listing. The company has been focused on strengthening its balance sheet, recently announcing plans to raise $160 million from existing and new investors. Udaan has also initiated processes to re-domicile its operations from Singapore to India, a prerequisite for filing its IPO documents.