E-commerce firm Meesho has invested ₹399.99 crore in its wholly-owned subsidiary Meesho Payments Private Limited (MPPL), a lending service provider, through a rights issue. According to a regulatory filing, the company subscribed to 1,14,28,571 fully paid-up equity shares of face value Re 1 each at a premium of ₹349 per share, resulting in a total cash consideration of ₹3,99,99,99,850. The shares were allotted on November 2, as reported by The Hindu BusinessLine. With this latest investment, Meesho's shareholding in the subsidiary will continue to remain at 100%.
The board had approved an investment of up to ₹400 crore in MPPL through a rights issue or further issue of capital, in one or more tranches, on October 28. At the same meeting, the board also approved setting up a new wholly owned financial services subsidiary, with an initial investment of up to ₹15 crore. As reported by The Hindu BusinessLine, the investment is intended to support MPPL's business operations and growth, helping the subsidiary build capabilities, scale up operations and meet business and regulatory requirements. The company stated that the fund infusion is expected to facilitate expansion of MPPL's activities, improve operational efficiency, and support the development of its offerings in line with evolving business and market needs.
MPPL, incorporated in April 2019, reported a turnover of ₹11.05 crore and a net loss of ₹24.65 crore for 2025-26. According to the regulatory filing, its turnover was ₹2.36 crore in 2024-25 and ₹19.95 lakh in 2023-24. The subsidiary operates as a Lending Service Provider (LSP) and continues to show significant revenue growth despite ongoing losses, indicating ongoing investments in building its lending operations and supporting the financial services push.
Meesho shares closed at ₹222.30 on Monday, down ₹0.80 or 0.36% from their previous close of ₹223.10, as reported by The Hindu BusinessLine. The stock opened at ₹222.95 and touched a high of ₹224.50 and a low of ₹216.05 during the session. This strategic investment positions Meesho to strengthen its lending capabilities and support the growth of its financial services subsidiary in the competitive e-commerce lending market. CEO Vidit Aatrey during the Q2 FY27 earnings call on October 28 highlighted that the company's lending products were showing encouraging signs while maintaining risk levels within internal pricing norms. The investment comes as Meesho explores financial services offerings for both sellers and consumers, with the company expanding its network of NBFC partners and increasingly looking at bringing banks on board.
