Meesho Invests ₹400 Crore In Payments Subsidiary Through Rights Issue To Expand Lending Business

E-commerce company Meesho has infused Rs 399.99 crore into its wholly owned subsidiary, Meesho Payments Private Limited (MPPL), through a rights issue to strengthen its lending operations and support future expansion.

According to a regulatory filing on Tuesday, Meesho subscribed to 1,14,28,571 fully paid-up equity shares of MPPL, representing an investment of more than 1.14 crore shares.

Each share carries a face value of Re 1 and was issued at a premium of Rs349, taking the total cash consideration to Rs 399.99 crore.

The subsidiary allotted the shares on Nov 2, the company said.

Meesho's board had approved an investment of up to Rs400 crore in MPPL on Oct 28.

The funding was authorised through a rights issue or additional capital issuance, either in a single transaction or multiple tranches.

During the same meeting, the board also cleared the establishment of another wholly owned subsidiary in the financial services sector.

The proposed entity will receive an initial investment of up to Rs15 crore.

Meesho said the latest capital infusion would help MPPL expand its business activities, strengthen operational capabilities and meet regulatory obligations.

The company expects the funding to improve efficiency and support the development of financial products and services aligned with changing market requirements.

MPPL, incorporated in April 2019, operates as a lending service provider.

The subsidiary reported turnover of Rs11.05 crore during the financial year 2025-26, reflecting growth from previous years.

Its turnover stood at Rs2.36 crore in 2024-25, compared with Rs19.95 lakh in 2023-24.

Despite the increase in revenue, MPPL recorded a net loss of Rs24.65 crore in 2025-26.

The investment is intended to provide additional financial resources for expanding the subsidiary's operations and meeting business requirements.

The transaction also reflects Meesho's continued financial commitment to its lending services business as the subsidiary works towards scaling its activities.