Meesho pours $45M into payments arm, plans in-house lending unit
What's the deal? Meesho has invested US$54.3M in its wholly owned subsidiary Meesho Payments (MPPL) through a rights issue, with shares allotted on November 2. Its board also approved a new, separate financial-services subsidiary to build in-house lending.
What's the endgame? The new entity, yet to be named, is meant to build in-house underwriting, design loan products, own borrower relationships and capture lending margins. Meesho plans an initial investment of up to US$2.04M in it.
Today, MPPL operates as a lending service provider, sourcing and servicing borrowers while regulated banks and non-banking financial companies (NBFCs) underwrite and hold the loans. It also provides a first-loss default guarantee to its financing partners, exposing it to some credit risk already.
Why now? On an October 28 earnings call, chief executive officer Vidit Aatrey said Meesho's lending products were showing "encouraging signs," with risks within internal pricing limits. The company is expanding its NBFC partnerships and exploring bank relationships.
The scale stands out against MPPL's size. Turnover rose to US$1.5M in FY26 from US$320.5K in FY25, but it posted a net loss of US$3.35M.
What could go wrong? Marketplace data can inform underwriting, but it doesn't grant permission to lend. Under the Reserve Bank of India's Digital Lending Directions, 2025, regulated lenders remain responsible for assessing creditworthiness, and data use is subject to consent and privacy rules. Meesho has not said whether it will seek an NBFC licence.
The signal: Indian e-commerce rivals are moving from arranging credit to owning it. Flipkart set up its own RBI-registered NBFC, while Amazon completed its acquisition of lender Axio in September 2025. Whether Meesho's bet pays off will hinge on credit quality, funding costs and regulatory execution rather than distribution reach alone.
Read more: bfsi.economictimes.indiatimes.com
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