Meesho Invests ₹400 Crore In Payments Subsidiary, Backs Retail Businesses And Plans New Lending Venture

Meesho has put another ₹400 crore into its payments subsidiary, Meesho Payments Private Ltd, through a rights issue completed on 2 November 2026. The move comes as the e-commerce company steps up its efforts to enter the lending and financial services space. Apart from the Meesho ₹400 crore investment, the company has cleared fresh funding for two businesses linked to the retail sector. It is also preparing to set up a separate subsidiary to handle its financial services operations.

How Did Meesho Shares Perform?

Meesho shares closed at ₹222.21 on Monday. On Tuesday, the stock was marginally higher (0.18%) at 11:16 AM.

According to the regulatory filing, Meesho subscribed to 1.14 crore fully paid-up equity shares of Meesho Payments at ₹350 each, including a premium of ₹349 per share. The allotment took place on 2 November. Meesho will continue to hold 100% ownership of the subsidiary.

The Meesho Payments subsidiary operates as a Lending Service Provider (LSP). Its turnover increased to ₹11.05 crore in FY26 from ₹2.36 crore in FY25. However, the subsidiary reported a net loss of ₹24.65 crore during the year.

Meesho Expands Investments Across Retail And Lending

The company has also approved an investment of up to ₹18.74 crore in Retail Pulse Labs and another $650,000 in Singapore-based Kirana Club.

Retail Pulse Labs operates a B2B marketplace connecting small retailers with FMCG brands and distributors. It reported revenue of ₹16.04 crore in FY26, against ₹4.92 crore in FY25, while posting a net loss of ₹1.60 crore.

Kirana Club develops software and digital platforms for grocery retailers. Meesho said these investments would support business expansion and strengthen its presence in the retail ecosystem.

Why Is Meesho Building Its Financial Services Business?

Meesho also plans to incorporate a new wholly owned subsidiary focused on financial services, with an initial investment of up to ₹15 crore.

The proposed entity will help Meesho develop in-house underwriting capabilities, design lending products and establish direct relationships with borrowers. It will also allow the company to capture lending margins and access institutional funding.

During its Q2 FY27 earnings call on 28 October, CEO Vidit Aatrey said Meesho's lending products were showing encouraging signs, with risks remaining within internal pricing limits. The company is also expanding its NBFC partnerships and exploring relationships with banks as part of its financial services expansion.

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