E-commerce platform Meesho is deepening its push into lending. The company’s board has approved an investment of up to ₹400 crore in its wholly owned subsidiary Meesho Payments Private Limited (MPPL), and has cleared plans to set up a new wholly owned subsidiary focused on financial services, according to a stock exchange filing dated 28 October 2026.
The capital will be infused through a rights issue or a further issue of shares, in one or more tranches. Meesho will continue to hold 100% of MPPL after the investment.
From lending partner to in-house lender
MPPL currently operates as a lending service provider (LSP), working with regulated banks and NBFC partners to offer credit to buyers and sellers on the Meesho platform. In the LSP model, the platform sources and services borrowers, while the regulated partner underwrites the loan and holds it on its books.
The proposed new subsidiary signals a shift in that approach. Meesho said the entity will allow the group to build in-house underwriting capabilities, control product design, own borrower relationships directly, capture the full lending margin and gain access to institutional funding. The company plans to make an initial investment of up to ₹15 crore in the new entity, which is yet to be incorporated and named. Meesho said it will make a separate disclosure once the company is registered.
MPPL is still small but growing quickly. Its turnover rose from ₹19.95 lakh in FY24 to ₹2.36 crore in FY25 and ₹11.05 crore in FY26, while it reported a net loss of ₹24.65 crore in FY26. The filing describes the ₹400 crore infusion as intended to help MPPL scale operations, improve efficiency and meet its business and regulatory requirements. As MPPL is a wholly owned subsidiary, the transaction is a related-party transaction, which the company said is at arm’s length. Promoters Vidit Aatrey and Sanjeev Kumar are directors on MPPL’s board.
Retail-tech bets alongside
The board also approved an investment of up to ₹18.74 crore in Retail Pulse Labs Private Limited, a B2B marketplace that connects kirana stores and small retailers with FMCG brands and distributors, mainly in Tier 2 to Tier 4 towns and rural India. Separately, it approved a further investment of up to $650,000 in its Singapore-based parent, Kirana Club Pte Ltd, which runs a digital platform for grocery retailers.
Comes with a stronger quarter
The announcements came on the same day Meesho reported its Q2 FY27 results. Revenue from operations rose about 34% year-on-year to ₹4,132 crore, while net loss narrowed 68% to ₹132.4 crore from ₹411.4 crore a year earlier. Net merchandise value (NMV) grew 23% to ₹12,911 crore, and the company generated ₹345 crore of free cash flow in the quarter.
Why it matters
Large consumer platforms in India are increasingly looking to move up the lending value chain, from distributing loans for partners to taking credit risk themselves. With a large base of small sellers and value-conscious buyers, Meesho has a ready pool of potential borrowers and rich transaction data for underwriting. Any move to become a lender in its own right would, however, depend on the structure of the new entity and the regulatory approvals it secures from the Reserve Bank of India.
