Temasek, Fidelity In Final Talks To Inject $200 Mn Into Lenskart

Singapore state investment firm Temasek and US-based Fidelity are in final discussions to infuse around $200 Mn into LensKart through a secondary share sale, valuing the omnichannel eyewear unicorn at around $5 Bn.

The secondary sale of Lenskart may reach a valuation 11-12% higher than its previous $4.5 Bn, distinguishing it from customary transactions that often conclude at lower valuations, ET reported.

Temasek, which is already an existing investor in Lenskart, is set to lead the funding round with an investment of $125-150 Mn, Fidelity, in its first-time investment in the startup, will contribute the remaining amount.

In this latest funding round, early investors like TR Capital, KKR and Avendus are considering selling a part of their stakes in Lenskart. However, SoftBank, holding the largest institutional stake at 16.5%, will not be divesting any shares in this round.

Founded in 2010, Lenskart is India’s largest omnichannel eyewear retailer with a growing presence in Singapore, UAE & other geographies. Lenskart has a customer base of 20 Mn in India.

Lenskart is also expanding internationally across Asia and the Middle East. In its bid to push international expansion, the eyewear unicorn acquired Japan’s largest online eyewear brand, OWNDAYS, in a deal worth $400 Mn.

It is also planning to expand its Southeast Asia (SEA) market footprint with the launch of 300-400 stores in the region over the next two years. With currently about 70 stores in Singapore, the Delhi NCR-based unicorn is planning to expand into Thailand and Philippines.

Last year, Lenskart secured $100 Mn investment from private equity player ChrysCapital. Earlier in 2023 itself, Lenskart raised $500 Mn from Abu Dhabi Investment Authority (ADAI).

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.