Singapore-based Temasek and Fidelity have invested $200 million in Indian eyewear startup Lenskart. This transaction values Lenskart, which is led by Peyush Bansal, at $5 billion. Temasek, already an investor in Lenskart, has increased its stake, while Fidelity has joined the company’s cap table for the first time.
Previous Funding Rounds
This latest investment follows a significant $500 million funding round from the Abu Dhabi Investment Authority last year. Over the past 18 months, Lenskart has raised nearly $1 billion in total. The company was last valued at $4.5 billion during a $100 million funding round in June of the previous year, according to Avendus Capital, which advised on the recent transaction.
Market Growth
Lenskart was founded 13 years ago by Peyush Bansal and Amit Chaudhary. The company has grown to become one of the largest eyewear retailers in India. Lenskart’s strategy of offering premium glasses at affordable prices has helped it outcompete many rivals. The company manufactures its own glasses and contact lenses and serves as the exclusive Indian licensing partner for several global eyewear technologies.
Lenskart operates in India, Southeast Asia, and the Middle East. It sells its products online and through more than 2,500 stores, with around 2,000 of these located in India.
Financial Performance
In FY23, Lenskart’s revenue from operations surged to Rs 3,788 crore, up from Rs 1,502 crore in FY22. This growth, coupled with controlled spending, helped Lenskart reduce its losses by 37.3%, bringing losses down to Rs 64 crore in FY23 from Rs 102 crore in FY22. The company’s primary revenue source is eyewear sales, with 59% of its income coming from the Indian market and the rest from international operations.
Future Plans of Lenskart
Lenskart continues to strengthen its market position by investing in various brands through its subsidiary, Neso Brands. Neso raised $100 million in seed funding in May 2022 and has investments in brands like GeoIQ, Owndays, and Le Petit Lunetier.
Recently, Peyush Bansal announced on LinkedIn that Lenskart plans to establish a new ‘mega factory’ by acquiring 25 acres of land within a 60-kilometer radius of Kempegowda International Airport in Bengaluru. This new factory will enhance the company’s manufacturing capabilities and support its goal of serving a billion eyes globally by 2025.
With this latest investment, Lenskart is well-positioned to continue its growth and expansion, both in India and internationally.
