Meesho plans to invest up to Rs 400 crore in its payments subsidiary and establish a separate lending company as it expands its financial services business.

In a regulatory filing on October 28, the company said its board had approved an investment of up to Rs 400 crore in Meesho Payments Private Limited (MPPL), which provides lending-related services. The investment will fund MPPL’s operations and business expansion.

Meesho will acquire additional shares in MPPL in one or more tranches while retaining its 100% ownership.

The board also approved setting up a wholly owned financial services subsidiary with an initial investment of up to Rs 15 crore.

The new company will allow Meesho to assess and approve loans internally, develop lending products, deal directly with borrowers and retain lending margins. Meesho also plans to raise funds from institutional lenders.

The subsidiary has not yet been incorporated, and the company has not disclosed when it will begin operations.

Meesho approves further investments in Kirana Club

Meesho’s board also cleared investments of up to:

  • Rs 18.74 crore in Retail Pulse Labs Private Limited, which connects small retailers with consumer goods companies and distributors, particularly in smaller towns and rural areas.
  • $650,000 in Singapore-based Kirana Club Pte. Ltd., which operates a digital platform for grocery retailers and is the parent company of Retail Pulse Labs.

The investments follow Meesho’s June 2026 announcement that it would acquire Kirana Club for Rs 202 crore in an all-cash deal.

During Meesho’s July earnings call, CEO Vidit Aatrey said Kirana Club was showing early signs of demand for its products, although the business remained small.

He also said Meesho was testing a separate low-cost delivery network for groceries and perishable goods, which require different logistics arrangements from its existing Valmo network.

What do the financials show?

The three companies reported the following revenue and losses for FY26:

  • Meesho Payments: Revenue rose from Rs 2.36 crore in FY25 to Rs 11.05 crore in FY26. It reported a net loss of Rs 24.65 crore.
  • Retail Pulse Labs: Revenue increased from Rs 4.92 crore to Rs 16.04 crore, while its net loss stood at Rs 1.60 crore.
  • Kirana Club: The Singapore entity reported revenue of SGD 45,808 and a net loss of SGD 837,754.

Meesho has not specified when it will complete the approved investments.

Read more:

The post Meesho to invest Rs 400 crore in payments arm, set up lending unit appeared first on MEDIANAMA.