New Delhi, Sept. 7 -- Swiggy Ltd. is selling its entire stake in B2B distribution arm Lynk Logistics to the parent of commerce platform Udaan for Rs.500 crore, as the food-delivery company shifts its exposure to the business through a stake in Udaan.

The transaction will give Swiggy an approximately 2.8% stake in Udaan. A separate Rs.75 crore primary investment in Udaan will take its holding to about 3.2%, according to the company.

Swiggy Networks Ltd., a wholly owned subsidiary of Swiggy, signed the share acquisition agreement and related documents with Trustroot Internet Pvt. Ltd. on Sept. 7, the company said in a stock-exchange filing. The transaction is expected to close by Oct. 22, subject to customary conditions and regulatory app...