It reported on Monday highlighted that people familiar with the situation reveal that sovereign wealth fund Abu Dhabi Investment Authority (ADIA) is in advanced discussions with Indian eyewear retail chain Lenskart Company for funding of up to $350 million to $400 million at a $4.5 billion valuation.
About the Lenskart Company
Online optical store Lenskart provides affordable lenses, eyeglasses, and accessories from leading e-commerce companies. The glasses can easily be ordered online, and the discounts change with every order.
Lenskart provides both an online and retail distribution service, unlike many other competitors. Customers can purchase goods at their distinctively designed retail store or lenskart.com.
Revenue Breakdown
Due to the quick expansion, operating revenue rose by 66% in the previous fiscal year. The company turned a profit for the fiscal year that concluded in March, but success wasn’t free. It is projected to be profitable overall and to increase by 50% in the India business alone in FY23. According to Registrar of Companies (RoC) statistics, the sale of eyewear products has been Lenskart’s primary source of income, making up around 94.3% of the business’s overall operating revenue in FY22. In FY22, revenue from subscription fees increased by 14%, while revenue from scrap and customer service fees totalled Rs 36 crore.
More Information about the Investment
An investment of up to $350 million to $400 million at a valuation of $4.5 billion is being discussed between Abu Dhabi Investment Authority (ADIA) and Indian eyewear retailer Lenskart. According to the report, the expenditure, which will be the largest fundraise by SoftBank-backed Lenskart, will probably be made through a secondary sale of stock with a preliminary round made up of growth equity at a $4.5 billion valuation, with some of Lenskart’s shareholders hoping to make a partial exit, it said.
An official declaration could be released in the next few weeks. Once the investment is finalised, ADIA will own close to 10% of Lenskart. Last year, the Lenskart company increased its global footprint in Singapore, the US, and West Asia. It also bought the bulk of the Japanese eyewear company Owndays.
Although it hasn’t yet been in its sixth round of funding this year, Lenskart company acquired $39.6 million last month from Chiratae Ventures, DSP India Fund, and Axis Growth Avenues AIF-I. Peyush Bansal launched the multi-channel eyewear company in 2010, and it currently has KKR, Kedaara Capital, Premji Invest, Temasek, and Falcon Edge among its investors.
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