CCI Gives Green Light To Kedaara Capital's Stake Purchase In Lenskart

SUMMARY

Kedaara is already an investor in the eyewear brand, having invested in 2019 as Lenskart raised $55 Mn from the VC firm

The development comes after CCI approved ADIA to acquire a 10% stake in Lenskart for $500 Mn

The eyewear unicorn reported a consolidated loss of INR 102.3 Cr in FY22 against a profit of INR 28.9 Cr in FY21

The Competition Commission of India (CCI) has approved the acquisition of 1.74% equity stake in the Peyush Bansal-led eyewear unicorn LensKart by Kedaara Capital Fund III LLP.

Kedaara Capital Fund III LLP is a SEBI-registered alternative investment fund (AIF).

In an X post on Tuesday, the CCI said it has approved “acquisition of approximately 1.74 per cent equity share capital of Lenskart Solutions Pvt Ltd by Kedaara Capital Fund III LLP (Kedaara Group)”.

Kedaara is already an investor in the eyewear brand, having invested in 2019 as Lenskart raised $55 Mn from the VC firm.

The development comes months after the competition watchdog approved Abu Dhabi Investment Authority (ADIA) to acquire a 10% stake in Lenskart for $500 Mn under the green channel route.

Following ADIA’s investment, the eyewear brand secured another $100 Mn from ChrysCapital to fuel its expansion.

Lenskart, founded in 2010, manufactures, assembles, distributes, and supplies products such as eyeglasses, powered sunglasses, and contact lenses. The unicorn has been working on expanding overseas in the recent past, mostly via acquisitions in target countries.

For instance, it acquired the Japanese eyewear brand OWNDAYS in 2022 for a hefty $400 Mn to expand to East and Southeast Asia, where the Japanese brand has a significant presence.

Lenskart operates more than 2,000 stores globally, including 1,500 stores in India. The startup claims to have a customer base of 20 Mn in India.

It has also launched a Thrasio-styled eyewear-focussed ecommerce roll-up brand, Neso Brands. The roll-up brand invested $4 Mn in the Paris-based omnichannel eyewear brand Le Petit Lunetier.

Further to expand its customer base, Lenskart is also working on vertical integration with a new manufacturing facility that will allow the brand to keep prices competitive.

The eyewear unicorn reported a consolidated loss of INR 102.3 Cr in FY22 against a profit of INR 28.9 Cr in FY21. Lenskart’s revenue from operations surged 66% to INR 1,502.7 Cr from INR 905.3 Cr in FY21.

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