PremjiInvest Backs Lenskart; IDG Ventures Call For A Partial Exit

New Delhi-based eyewear platform Lenskart has raised over $30.14 Mn (INR 200 Cr) from Wipro chairman Azim Premji’s family office, PremjiInvest. The funding has been done at a valuation of $270 Mn (INR 1800 Cr).

Avendus Capital took part in the deal as an advisor to Lenskart.

The deal also marked the partial exit of IDG Ventures India from the company. IDG first invested $4 Mn in the company in 2011, at a valuation of $10 Mn.

The raised funds will be utilised to extend its omnichannel presence. “We intend to grow strategically thereby strengthening our presence via both online and offline channels,” said Lenskart founder & CEO Peyush Bansal in a press statement.

Lenskart Solutions, formerly known as Valyoo Technologies, was launched in 2010 by Peyush Bansal. It started as an online platform but soon adopted an omnichannel strategy. It now deals in the manufacturing, assembly, distribution, and supply of products such as eyeglasses, power sunglasses, and contact lenses.

The company conducts over 1,500 eye exams daily through its home eye exam service, which it intends to make available for every home in urban and rural India. It operates 200 offline stores and plans to expand to 400 stores by end of the year. The present annualised revenue run rate for the company is $45.21 Mn (INR 300 Cr). This is further expected to reach $376 Mn (INR 2500 Cr) in the next four years with offline channels contributing 50% of the revenue in next two years.

It majorly competes with Titan Eyewear which has around 404 offline stores and secured net revenues of $56 Mn (INR 372 Cr) in FY16.

Earlier, the company also tried to diversify into different segments such as bags, watches and jewellery. But those were shut down in 2014, owing to high amount of competition and to retain focus on its core brand.

The earlier funding of $60 Mn Series D came in May 2016 and was led by World Bank arm IFC with an investment of $25.6 Mn (INR 171 crore). Infosys co-founder Kris Gopalakrishnan, Zurich-headquartered asset management firm Adveq Management, along with the existing investor TPG Growth and IDG Ventures, also participated in the round.

$21.9 Mn funding in Series C was done in January 2016 at a valuation of $240 Mn. TPG Growth, TR Capital and IDG Ventures participated in that round. Earlier in 2013, the company raised $10 Mn from Unilazer Ventures Pvt. Ltd and IDG Ventures.

The development was first reported by ET.