Temasek, the Singaporean state investment firm, along with US-based Fidelity, has infused $200 million into Lenskart, the omnichannel eyewear unicorn.
This investment also signifies Temasek’s doubling down on Lenskart, as noted by financial advisor Avendus. Additionally, Fidelity Management & Research Company (FMR) has joined the cap table, Avendus stated.
According to a report by TechCrunch, the transaction valued Lenskart at $5 billion.
This comes days after reports surfaced indicating that both Temasek and Fidelity were in the final stages of discussions to back the startup with $200 million through a secondary share sale.
Continue Exploring: Lenskart set to secure $200 Million funding from Temasek, Fidelity
Over the past 18 months, Lenskart has secured nearly $1 billion in capital, solidifying its position as one of the largest growth-stage startups.
Neeraj Shrimali, Managing Director and Cohead of Digital and Technology Investment Banking at Avendus Capital, emphasized, “The investment from renowned global investors underscores the uniqueness of Lenskart’s disruptive model and reflects the anticipation surrounding one of the most awaited IPOs in India in the upcoming years.”
Established in 2010 by Peyush Bansal, Lenskart stands as India’s premier omnichannel eyewear retailer, expanding its footprint into Singapore, the UAE, and various other regions. With a customer base of 20 million in India alone, the company operates over 2,500 stores, predominantly in India, numbering around 2,000.
In addition to extending its reach within India, Lenskart is rapidly expanding its footprint across Southeast Asia and the Middle East.
Last year, Lenskart secured a $100 million investment from private equity player ChrysCapital. In 2023, Lenskart also raised $500 million from the Abu Dhabi Investment Authority (ADIA).
Financial Performance
In the financial year 2022-23 (FY23), the startup recorded sales of INR 3,788 crore, marking a 152% surge from INR 1,502.7 crore in the preceding fiscal year.
The startup mainly generated 95% of its revenue from the sale of eyewear products.
During the period under review, there was a notable 38% decrease in net loss, amounting to INR 63.7 crore, compared to INR 102.3 crore in the previous fiscal year.
This funding comes amidst a challenging landscape for late-stage financing, with startups in this sector only managing to raise $314 million across 13 deals in April, marking a stark 50% decline.
Continue Exploring: Lenskart’s FY23 revenue soars to INR 3,788 Crore; losses narrow to INR 64 Crore