Meesho shares in focus on Rs 400-crore investment in payments arm

Shares of Meesho Ltd will be in focus today after the e-commerce company disclosed an additional investment of nearly Rs 400 crore in its wholly owned subsidiary, Meesho Payments Private Ltd, through a rights issue. The investment is aimed at supporting the subsidiary's business operations and growth as Meesho looks to build its presence in financial services.

According to the company's regulatory filing, Meesho subscribed to 1,14,28,571 fully paid-up equity shares of Meesho Payments, each carrying a face value of Re 1, at a premium of Rs 349 per share. The shares were allotted on November 2, taking the total investment to approximately Rs 400 crore. Meesho's shareholding in the subsidiary will continue to remain at 100%.

Meesho shares closed at Rs 222.30 on Monday, down Rs 0.80, or 0.36%, from their previous close of Rs 223.10. The stock opened at Rs 222.95 and touched a high of Rs 224.50 and a low of Rs 216.05 during the session.

Meesho Payments operates as a Lending Service Provider (LSP). The subsidiary reported a turnover of Rs 11.05 crore in FY26, compared with Rs 2.36 crore in FY25 and Rs 19.95 lakh in FY24. However, it reported a net loss of Rs 24.65 crore for FY26. The company said the latest capital infusion would help the subsidiary strengthen its capabilities, scale operations and meet business and regulatory requirements.

The investment comes as Meesho explores financial services offerings for both sellers and consumers. During its Q2 FY27 earnings call on October 28, chief executive officer Vidit Aatrey said the company's lending products were showing encouraging signs while maintaining risk levels within its internal pricing norms. He also said Meesho was expanding its network of non-banking financial company (NBFC) partners and increasingly looking at bringing banks on board.

Aatrey said financial services remained part of the company's new initiatives, adding that Meesho would share more details on assets under management and its medium- and long-term targets as these offerings move closer to becoming part of its core marketplace.

The additional investment therefore comes as Meesho works to develop its financial services business alongside its e-commerce marketplace.