Meesho Makes a ₹202-crore bet on India’s kirana ecosystem

Meesho Ltd will acquire kirana-focused business-to-business (B2B) commerce platform Kirana Club for approx. ₹202 crore, according to a stock exchange filing on Friday. The e-commerce company aims to expand beyond consumer shopping and strengthen its presence among millions of small retailers in India.

The acquisition, which may be Meesho’s first acquisition, will be completed in three tranches. This includes the acquisition of 100% of Singapore-based Kirana Club Pte. Ltd. and acquired an additional 0.41% stake in its Indian subsidiary Retail Pulse Labs Private Ltd. (RPLPL) from existing shareholders.

Meesho’s board of directors approved the transaction at its June 12 meeting. The deal is expected to close on or before March 31, 2027, subject to the terms set forth in the agreement.

Once completed, Kirana Club will be a wholly owned subsidiary of Meesho, while RPLPL will be its reduced subsidiary. Kirana Club will continue to operate independently after the acquisition, the company said. Meesho will indirectly own 99.59% of RPLPL through Kirana Club and directly own the remaining 0.41%.

The transaction will provide a full exit for Kirana Club’s existing investors, and the company’s founders are expected to continue running the business post-acquisition.

While Kirana Club operates a digital platform for grocery retailers, RPLPL operates a B2B e-commerce marketplace connecting kirana stores and small retailers with fast-moving consumer goods (FMCG) brands and distributors, especially in tier 2, 3 and 4 towns and rural markets. It generates revenue through commissions and advertising services.

According to statements made by Meesho, RPLPL reported unaudited turnover ₹15.84 crore in FY26 while net loss is ₹0.30 crore. Kirana Club reported an unaudited turnover of SGD 45,808.25 and a net loss of SGD 739,910.99 in the same period.

Founded in 2020 by Anshul Gupta and Aishwarya Jain, Kirana Club has built a network of over 4.1 million registered retailers through its mobile-first platform that helps kirana stores source FMCG and grocery products directly from brands. The company operates a marketplace model that focuses on small retailers in non-metropolitan markets.

big piece of cake

This acquisition will give Meesho a presence in the kirana-focused B2B commerce segment at a time when small retailers continue to constitute the majority of India’s grocery business. According to industry estimates, India’s grocery market is valued at approximately $658 billion, with kirana and general trade channels representing approximately 91% of the market.

“We see significant opportunities to strengthen access, transparency and product discovery for kiranas in underserved markets across India and expand this to all forms of B2B retail across India,” Vidit Aatrey, managing director and CEO of Meesho, said in a statement.

The acquisition comes after Meesho reported consolidated revenue in FY26. ₹12,626 crore, up nearly 35% from the previous year. Net loss narrowed to approx. ₹1,358 crore ₹3,942 crore in FY25. Meesho’s shares closed down 0.8 percent ₹167 on Friday.