Key Highlights
- Meesho approves investment of up to INR 28,900 million in Meesho Technologies.
- 1.31 billion equity shares issued at a price of INR 22.05 each.
- Subsidiary reported revenue of INR 93,858.74 million for the period ending March 2025.
- Investment executed as a related party transaction at arm’s length.
- Meesho Technologies continues as a wholly owned subsidiary with no change in shareholding.
Meesho Limited has announced a significant financial investment of up to ₹2,890 crore in its wholly owned subsidiary, Meesho Technologies Private Limited, through a rights issue. The decision is aligned with the company’s previously stated objectives outlined during its initial public offering process.
Details of the Rights Issue
As part of this transaction, Meesho Limited subscribed to more than 1.31 billion equity shares of the subsidiary, each priced at ₹22.05. The investment has been made entirely through cash consideration. Despite the capital infusion, there is no change in ownership, and Meesho Technologies continues to remain a 100% subsidiary of the parent company.
Business Overview of Meesho Technologies
Meesho Technologies, incorporated in March 2024, operates the Meesho marketplace application in India. The platform connects sellers with end consumers across various product categories, including fashion, accessories, electronics, home and kitchen goods, fitness equipment, and office supplies.
Financial Performance and Operations
For the period ending March 2025, Meesho Technologies reported revenue from operations amounting to ₹93,858.74 million. The subsidiary operates exclusively in India and functions within the commercial and industrial domain, supporting the parent company’s broader retail and digital commerce ecosystem.
Purpose of the Investment
Meesho has stated that this investment forms part of the planned utilization of funds outlined in its IPO prospectus. The transaction is classified as a related party deal; however, it has been carried out at arm’s length. The capital infusion is expected to support business expansion, technological development, and operational scaling within the subsidiary.