Meesho backs kirana ecosystem with Rs 50 crore investment in Kirana Club arm

BENGALURU: Meesho is putting more weight behind the kirana ecosystem, with the e-commerce company approving an investment of up to Rs 50 crore in Retail Pulse Labs Private Limited (RPLPL), a subsidiary of Kirana Club.

The investment was approved by Meesho’s board on 6 October and will follow the completion of the first tranche of its proposed acquisition of Kirana Club Pte. Ltd. and RPLPL. Once that tranche closes, RPLPL will become a step-down subsidiary of Meesho.

The proposed investment will be made in one or more tranches over a period of one year from the closing of the first tranche of the original acquisition. Meesho may subscribe to or purchase equity or equity-linked instruments in RPLPL, or other permissible securities, depending on the structure agreed at each stage.

The exact instrument, pricing and number of securities will be decided when each tranche is deployed, with Meesho saying it will make the required disclosures to the stock exchanges.

Alongside the investment, Meesho’s board has approved an amendment to the share purchase agreement signed on 12 June 2026 for the proposed acquisition.

The amendment is aimed at incorporating procedural alignments and operational changes related to the transaction. Importantly, the overall aggregate consideration remains unchanged at Rs 202.09 crore, while the scope of the proposed acquisition also remains the same.

Meesho said no tranche of the acquisition has been completed as of 6 October. It will make separate disclosures to the stock exchanges as and when each tranche is completed.

The company does not expect to require any prior government or regulatory approval for the proposed Rs 50 crore investment.

RPLPL operates a B2B e-commerce marketplace that connects kirana and other small retailers with FMCG brands and distributors, particularly across Tier 2, Tier 3, Tier 4 and rural markets.

The platform generates revenue through commissions and advertising services, giving Meesho a route to strengthen its presence beyond its consumer-facing marketplace.

RPLPL was incorporated on 7 October 2021 and is based in India. Its audited turnover stood at Rs 16.04 crore in FY2025-26, up from Rs 4.92 crore in FY2024-25 and Rs 2.7 crore in FY2023-24.

However, the business remained loss-making, reporting a net loss of Rs 1.60 crore for FY2025-26.

Meesho said the investment is intended to support RPLPL’s strategic growth, business expansion and capital requirements, while helping integrate capabilities across the wider ecosystem.

The Rs 50 crore investment will be made in cash, but Meesho has not yet specified the percentage of RPLPL it will acquire. The final shareholding will depend on the valuation determined when each tranche is deployed.

The company said the proposed transaction is not a related-party transaction as of the date of approval. After the first acquisition tranche is completed, subsequent investments will be made on an arm’s length basis.

Meesho also said neither its promoter, promoter group nor group companies have any interest in RPLPL.

The board meeting began at 9 pm on Tuesday and concluded at 9.20 pm, with company secretary and compliance officer Rahul Bhardwaj signing off on the disclosure.

With the fresh capital commitment and the broader Kirana Club acquisition moving ahead, Meesho is looking to deepen its B2B play by bringing smaller retailers, FMCG suppliers and technology closer together.