Meesho has put nearly Rs 400 crore into its payments arm, Meesho Payments, on 2 November to fund growth in lending and meet regulatory needs.

The e-commerce firm paid Rs 399.99 crore for about 1.14 crore new shares in the unit.

Each share has a face value of Re 1 and was sold at a Rs 349 premium, or Rs 350 in all. Meesho still owns 100% of the unit.

The board approved the plan on 28 October, allowing up to Rs 400 crore in one or more instalments.

The shares were allotted five days later. Meesho Payments is still a small business.

It works as a lending service provider, which means it supports loan-related activities. Revenue has grown fast from a tiny base.

Turnover was Rs 19.95 lakh in FY24, Rs 2.36 crore in FY25 and Rs 11.05 crore in FY26. The unit still lost Rs 24.65 crore in FY26.

Because Meesho owns the unit outright, the deal counts as a related-party transaction. The filing calls it an arm’s length deal.

Promoters Vidit Aatrey and Sanjeev Kumar sit on the unit’s board, and no government approval is needed.

It follows an earlier top-up. The board cleared a further Rs 100 crore on 6 May, and Meesho invested about that much through a rights issue in May.

The same board meeting also approved a new wholly owned financial services company, with up to Rs 15 crore to start.

Meesho says it will let the group handle lending in house, from judging borrowers to designing loan products.

The company has not been named yet, and Meesho will make a separate disclosure once it is registered.

The board also cleared up to Rs 18.74 crore for Retail Pulse Labs and up to $650,000 for its parent, Kirana Club of Singapore, both of which serve small grocery retailers.

In all, the rupee approvals come to up to Rs 433.74 crore, plus $650,000 for Kirana Club, though Meesho has not given a completion date for the investments.

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