Lenskart to receive $500 Mn from ADIA in exchange for 10% stake
- ByStartupStory | March 16, 2023
Lenskart secures $500M funding from Abu Dhabi Investment Authority (ADIA) in a recent development, Abu Dhabi Investment Authority (ADIA) has signed a definitive agreement to invest $500 million in eyewear brand Lenskart. The funding is expected to be mainly through a secondary share sale, with a small primary round consisting of growth equity. This investment comes after reports three months ago that ADIA was set to invest up to $400 million in Lenskart, and days after Chrys Capital announced plans to invest another $100 million.
Avendus Capital provided exclusive financial advice to Lenskart and its shareholders during the transaction. Earlier reports indicated that SoftBank, Kedaara Capital, TR Capital, and Alpha Wave Global, early investors in Lenskart, were looking to partially exit the omnichannel eyewear brand. Some investors reportedly obtained a partial exit through the secondary share sale, although neither Lenskart nor ADIA has disclosed any names.
According to media reports, after the completion of the deal, Abu Dhabi Investment Authority (ADIA) would hold a 10% stake in Lenskart. SoftBank currently holds a 19% stake, followed by Premji Invest at 10.4% and Kedaara Capital at 9%. No names were revealed for partial exits resulting from the secondary share sale. Founder and CEO of Lenskart, Peyush Bansal, said that ADIA’s patient and long-term approach to investing makes it a perfect partner for the eyewear brand’s next phase of growth. The deal is subject to regulatory approvals, and Avendus Capital served as the exclusive financial advisor to Lenskart and its shareholders.
Hamad Shahwan Al Dhaheri, executive director of private equities department, ADIA said that the investment is in line with their strategy of investing in high-growth businesses in Asia that are linked to the region’s consumption-driven growth and rapid technological advancement. According to data, Lenskart has raised $879.6 Mn in funding since 2014, with more than $205 Mn raised in 2022 alone. The latest investment round, which includes a secondary share sale, would take the total fundraising of Lenskart in the last 12 months to over $700 Mn across multiple rounds. Lenskart has been focusing on international expansion, having expanded to Singapore, the US and the Middle East in recent months. In June 2022, Lenskart acquired Japan’s largest online eyewear brand, OWNDAYS, in a deal worth $400 Mn.
Lenskart’s acquisition of Japan’s largest online eyewear brand, OWNDAYS, for $400 Mn in June last year, made it the largest omnichannel eyewear brand in Asia. The acquisition expanded Lenskart’s geographical reach to 13 markets, including India, Japan, and multiple countries in Southeast Asia. In addition to Lenskart, founder Peyush Bansal has launched Neso Brands, an eyewear-focused ecommerce roll-up brand that raised $100 Mn in May 2022. Lenskart has over 2,000 stores, including 1,500 stores in India and the rest across various geographies. Despite reporting a consolidated loss of INR 102.3 Cr in FY22, Lenskart’s revenue from operations increased by 66% to INR 1,502.7 Cr from INR 905.3 Cr in FY21.
Follow Startup Story
Related Posts
