Lenskart In Talks To Secure $400 Funding From Sovereign Wealth Fund ADIA

SUMMARY

Lenskart is in discussions to receive between $350 Mn and $400 Mn from Abu Dhabi Investment Authority (ADIA) at a post-money valuation of $4.5 Bn

With this investment, ADIA will likely have a 10% shareholding in Lenskart

The development comes almost a month after Inc42 reported that Lenskart was securing $39.6 Mn from Chiratae Ventures, DSP India Fund, and Axis Bank’s Axis Growth Avenues AIF-I

Omnichannel eyewear brand Lenskart is in discussions to receive between $350 Mn and $400 Mn from the sovereign wealth fund Abu Dhabi Investment Authority (ADIA) at a post-money valuation of $4.5 Bn.

With this investment, ADIA will likely have a 10% shareholding in Lenskart. The transaction will be done in the form of the secondary sale of stakes with a primary round involving growth equity, sources told the Economic Times.

Inc42 reached out to Lenskart regarding the development. However, the company did not share a response at the time of filing the story.

The development comes almost a month after Inc42 reported that Lenskart was securing $39.6 Mn from a bunch of investors including Chiratae Ventures, DSP India Fund, and Axis Bank’s Axis Growth Avenues AIF-I.

In June, Lenskart bought a majority stake in Japanese eyewear brand OWNDAYS for about $400 Mn. As part of the deal, OWNDAYS’ existing investors–L Catterton Asia and Mitsui & Co. Principal Investment exited the company.

Set up in 2010 by Peyush Bansal, Amit Chaudhury, and Sumeet Kapathi, the Faridabad-based unicorn claims that it serves more than 100K customers on a monthly basis and over 7 Mn customers annually via its omnichannel model. It claims to operate 750+ stores in 175 cities across India.

So far, it has raised about $980 Mn funding from investors. Its cap table includes Avendus Future Leaders Fund II, Alpha Wave Ventures and Epiq Capital, among others.

In the financial year 2021-22, it reported a consolidated loss of INR 102.3 Cr against a profit of INR 28.9 Cr gained in the previous fiscal year (FY21).

Its total revenues soared by 56.7% to INR 1,618.3 Cr in the financial year 2022 (FY22) as compared to INR 1,032.2 Cr in the fiscal year 2021. Meanwhile, its operating revenue grew by 66% to INR 1,502.7 Cr against INR 905.3 Cr posted in FY21.

In India’s eyewear space, it faces competition from the likes of ClearDekho, Coolwinks, Titan Eyewear and Himalaya, among others.

According to a Statista report, India’s eyewear market is valued at $4.99 Bn in 2022. The industry is set to become a $2.24 Bn space by 2027, growing at a CAGR of 8.92% in the forecasted period (2022-27).