E-commerce platform Meesho has announced a substantial investment of nearly Rs 400 crore into its wholly-owned subsidiary, Meesho Payments Private Ltd. The capital infusion, executed through a rights issue, is designed to significantly enhance the subsidiary's operational capabilities and accelerate Meesho's strategic expansion into the financial services sector.
According to regulatory filings, Meesho subscribed to 1,14,28,571 fully paid-up equity shares of Meesho Payments. Each share carried a face value of Re 1 and was acquired at a premium of Rs 349 per share. The shares were officially allotted on November 2, bringing the total investment to approximately Rs 400 crore. Meesho will maintain its 100% ownership stake in the subsidiary following this transaction.
Strengthening Financial Services Offerings
This investment underscores Meesho's ambition to deepen its presence in financial services for both its extensive network of sellers and its growing consumer base. Meesho Payments Private Ltd operates as a Lending Service Provider (LSP), a crucial component in the company's financial ecosystem.
While Meesho Payments reported a turnover of Rs 11.05 crore in FY26, a notable increase from Rs 2.36 crore in FY25 and Rs 19.95 lakh in FY24, it also registered a net loss of Rs 24.65 crore for FY26. The company stated that the fresh capital is essential for strengthening the subsidiary's infrastructure, scaling its operations, and ensuring compliance with business and regulatory requirements.
CEO Highlights Growth in Lending Products
During its Q2 FY27 earnings call on October 28, Meesho CEO Vidit Aatrey highlighted the encouraging performance of the company's lending products. Aatrey noted that these offerings are showing positive signs while effectively managing risk levels within internal pricing norms.
Aatrey also indicated that Meesho is actively expanding its network of Non-Banking Financial Company (NBFC) partners and is increasingly exploring collaborations with banks to further broaden its financial service offerings. He emphasized that financial services remain a key new initiative for the company, with more detailed information on assets under management and medium-to-long-term targets expected as these services become more integrated into Meesho's core marketplace.
The strategic capital injection positions Meesho to significantly advance its financial services business, complementing its established e-commerce marketplace and fostering new avenues for growth and value creation for its stakeholders.