Swiggy inks $52 million share-swap pact with Trustroot to exit Lynks Logistics

Food delivery and quick commerce major Swiggy Limited has agreed to offload its entire shareholding in step-down logistics subsidiary Lynks Logistics Limited to Singapore-based Trustroot Internet Private Limited through an all-stock transaction valued at approximately $52.35 million (₹438 crore).

According to a regulatory filing, Swiggy Networks Limited, a material wholly owned subsidiary of the listed company, executed a share acquisition agreement alongside an amendment to the Series G shareholders’ agreement to finalise the divestment. Under the terms of the arrangement, Swiggy Networks will transfer 100% of the issued and paid-up equity in Lynks to Trustroot. In exchange, the Singapore entity will allot 166,534 Series R Compulsorily Convertible Preference Shares to Swiggy Networks at an issue price of $314.40 per preference share.

The deal effectively trades Swiggy’s direct operating control over its wholesale vertical for an equity position in Trustroot, the parent entity operating the B2B e-commerce platform Udaan.

Consolidating assets ahead of October close

Ahead of the final closing, Swiggy structured an internal realignment through a business transfer agreement. Under that pact, Swiggy Networks is hiving off its authorised business-to-business distribution wing and transferring the underlying operations directly into Lynks.

Consequently, Trustroot will take over an operating wholesale distribution machinery rather than just an empty corporate shell. For the financial year ended March 31, 2026, Lynks on a standalone basis generated nil revenue and registered a negative net worth of ₹11 lakh. In sharp contrast, the B2B distribution business being bundled into it generated ₹668 crore in turnover during FY26, accounting for 2.90% of Swiggy’s total consolidated revenue. Furthermore, net assets attributable to this distribution unit stood at ₹500 crore as of March 31, 2026, making up 2.73% of the parent group’s consolidated net worth.

The company stated in the statutory intimation that the transaction will lead to a complete structural exit from the step-down arm. "Upon completion of the transaction in accordance with the terms of the SAA and the DOA, Lynks Logistics Limited will cease to be a wholly owned subsidiary of Swiggy Networks Limited and, consequently, a step-down wholly owned subsidiary of the Company," Swiggy notified the exchanges.

Swiggy clarified that the transaction is conducted at arm’s length and does not fall within related-party rules, noting that Trustroot and its affiliates operate in wholesale cash-and-carry trading and hold no ties to Swiggy's promoter group.

Subject to standard closing conditions and regulatory approvals, Swiggy expects the transaction to conclude by October 22, 2026. The transaction enables Swiggy to streamline its core balance sheet by offloading capital-heavy distribution assets while preserving strategic upside via foreign preference shares in a major wholesale network.