The transaction, announced by Swiggy on Monday (September 7), is expected to be completed by October 22, subject to the fulfilment of conditions agreed by the parties.
Lynks is currently a step-down wholly owned subsidiary of Swiggy. Following the transaction, it will no longer be part of the Swiggy group.
The deal involves a transfer of Swiggy’s business-to-business (B2B) authorised distribution business to Lynks before the stake sale. Swiggy Networks currently operates the business, which generated ₹668 crore in revenue in the financial year ended March 31, 2026.
That revenue accounted for 2.90% of Swiggy’s consolidated revenue for the year. The business had net assets of ₹500 crore, equivalent to 2.73% of Swiggy’s consolidated net worth, as of March 31, 2026.
What is being transferred
Swiggy’s filing said Lynks itself reported no revenue on a standalone basis for the financial year ended March 31, 2026 and had a negative net worth of ₹11 lakh as of March 31.
The B2B distribution business will first be transferred from Swiggy Networks to Lynks under a business transfer agreement. Swiggy Networks will then transfer its entire shareholding in Lynks to Trustroot Internet.
Rather than receiving cash, Swiggy Networks will receive 166,534 Series R compulsorily convertible preference shares issued by Trustroot Internet at $314.40 per share. Based on the stated issue price and number of shares, the consideration is about $52.4 million.
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Who is buying Lynks Logistics
Trustroot Internet is based in Singapore and, according to Swiggy’s filing, it and its affiliates are engaged in cash-and-carry wholesale trading.
The buyer is not part of Swiggy’s promoter group or group companies, and Swiggy said the transaction does not fall under related-party transactions.
Q1 peformance
Swiggy reported a narrower-than-expected consolidated net loss for the June quarter, while revenue and operating performance were largely in line with Street estimates. The food and quick commerce platform posted a net loss of ₹791 crore, compared with ₹1,197 crore in the year-ago period. Revenue from operations rose 37.3% to ₹6,812 crore from ₹4,961 crore, while the earnings before interest, tax, depreciation and amortisation (EBITDA) loss narrowed to ₹650 crore from ₹945 crore a year ago.
Overall revenue rose 34% year-on-year to ₹7,112 crore. The food delivery business reported a 17.4% increase in Gross Order Value (GOV) to ₹9,490 crore, marginally below Street expectations of 18-19% growth. Adjusted EBITDA for the segment rose by ₹100 crore year-on-year to ₹292 crore, with the adjusted EBITDA margin at 3.1%. Monthly transacting users (MTUs) increased 17.8% to 19.2 million.
Shares of Swiggy closed at ₹276.80, up 0.25% from the previous close on Monday.
