Lenskart, the largest eyewear retailer in Asia, has received a significant boost with a $200 million investment from Singapore’s state investment firm Temasek and US-based Fidelity Management & Research Company (FMR).
This latest round of funding has propelled Lenskart’s valuation to an impressive $5 billion, according to financial advisor Avendus.
This funding round highlights Temasek’s continued confidence in Lenskart, while marking Fidelity’s first investment in the company. The transaction follows recent reports that both firms were in the final stages of discussions to invest through a secondary share sale.
Founded in 2010 by Peyush Bansal, Lenskart has become a major player in the eyewear market, attracting close to $1 billion in capital over the past 18 months. The company operates over 2,500 stores, with around 2,000 located in India, and serves a customer base of 20 million.
Neeraj Shrimali, managing director and cohead of digital and technology investment banking at Avendus Capital, stated, “This investment by renowned global investors underscores the uniqueness of Lenskart’s disruptive model and highlights the excitement surrounding one of the most anticipated IPOs in India in the coming years.”
In addition to its strong foothold in India, Lenskart is expanding rapidly in Southeast Asia and the Middle East.
Last year, the company secured a $100 million investment from private equity firm ChrysCapital, and earlier in 2023, it raised $500 million from the Abu Dhabi Investment Authority (ADAI).
Financially, Lenskart reported sales of INR 3,788 crore for the fiscal year 2022-23 (FY23), a 152% increase from INR 1,502.7 crore in the previous fiscal year.
The company’s revenue is primarily driven by eyewear product sales, which account for 95% of its total earnings. Meanwhile, Lenskart’s net loss declined by 38% to INR 63.7 crore, down from INR 102.3 crore in the previous fiscal year.
This substantial investment comes at a challenging time for late-stage funding, as startups in the sector raised only $314 million across 13 deals in April, a 50% decline.
Despite these market conditions, Lenskart’s ability to secure significant funding underscores its robust market position and growth potential.
