Abu Dhabi Investment Authority investing $500 million in Indian eyewear brand Lenskart
New Delhi-based eyewear brand Lenskart was founded in 2008 by Bansal, Amit Chaudhary, Neha Bansal, and Sumeet Kapahi. The company has more than 2,000 stores, of which 1,500 are in India and the rest in Southeast Asia and the Middle East.
The Abu Dhabi Investment Authority (ADIA), which is a sovereign wealth fund owned by the Emirate of Abu Dhabi, investing $500 million in Indian eyewear retailer Lenskart, the company said Thursday, 16 March.
According to a joint press release, the deal includes both primary and secondary shares. Once the deal completes, it will make ADIA one of the largest shareholders in Lenskart.
Commenting on the investment, Hamad Shahwan Al Dhaheri, executive director of the private equities department, ADIA, said, "Given its unique technology-enabled and vertically integrated business model, we believe the company remains well-positioned to build on its leadership position. This investment is a continuation of our strategy of investing in highly differentiated, market-leading businesses in Asia linked to the region's consumption-driven growth and rapid technological advancement,”
Lenskart's funding would be the biggest funding round in the last one year in the Indian startup ecosystem after Dailyhunt had raised $800 million in April 2022.
The company said it will deploy the fresh capital to expand its presence in Asia and the Middle East.
“It is still Day 1 at Lenskart. Vision Correction remains a big problem, and Myopia rates continue to grow rapidly, touching levels as high as 80-90 per cent in some parts of Asia. Hence, we are still very early in our journey and have a lot of work to do to continue to make our desired impact in this area of critical need. And ADIA, with its patient and long-term approach to investing, is a perfect partner for us as we embark on the next phase of our journey," said Peyush Bansal, founder & CEO of Lenskart.
New Delhi-based eyewear brand Lenskart was founded in 2008 by Bansal, Amit Chaudhary, Neha Bansal, and Sumeet Kapahi and is operated by Lenskart Solutions Pvt Ltd. The company has more than 2,000 stores, of which 1,500 are in India and the rest in Southeast Asia and the Middle East.
Lenskart counts private equity firm KKR & Co., Japan's SoftBank Group Corp., Singapore state investment firm Temasek, and India's PremjiInvest as its existing investors.
Reportedly, the company was also in its with PE firm ChrysCapital to raise $100 million. In 2022, Lenskart raised $39.6 million from Chiratae Ventures, DSP India Fund, and Axis Growth Avenues AIF-I in its fifth round of funding.
Currently, the eyewear retailer is planning to shift its manufacturing facility in Southeast Asia from Bhiwadi, Rajasthan. Last year in June, it acquired a controlling stake in Japanese direct-to-consumer (D2C) eyewear brand Owndays, in a bid to place itself as one of the largest omnichannel players in the eyewear category in Asia.
According to Lenskart, the company is now profitable and its revenue increased 60 per cent for the second year in a row. In FY22, the company reported a net loss of Rs 102.3 crore from a net profit of about Rs 29 crore in FY21.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.