ADIA in advanced talks to fund $400 million in Lenskart
- ByStartupStory | December 12, 2022
According to sources who were informed of the situation, the Economic Times daily stated on Monday that Abu Dhabi Investment Authority (ADIA) and Indian eyewear retailer Lenskart are in advanced talks for an investment of up to $350 million to $400 million at a $4.5 billion valuation.
The deal, which could give ADIA an almost 10% stake in Lenskart, will probably take the form of a secondary sale of shares with a narrow distribution round composed of growth equity. Additionally, Lenskart has operations in Singapore, the UAE, and the US. It has an assembly plant in the Indian state of Haryana and a fully automated plant in the state of Rajasthan, which has not yet begun production.
A majority stake in the Japanese eyewear company Owndays was purchased by Lenskart earlier this year, making the Indian company one of Asia’s biggest online retailers in the industry. By making the acquisition, the business would increase its direct-to-consumer (D2C) presence in Southeast Asian nations like Singapore, Thailand, and Taiwan.
In the prior fiscal year, operating revenue increased by 66% as a result of the rapid expansion. Although the business was profitable in the fiscal year that ended in March, its success came at a price. On a combined basis, it is anticipated to be profitable in FY23 and to grow by 50% in the India business alone.The sale of eyeglasses items has been Lenskart’s main source of income, accounting for roughly 94.3% of the company’s total operating revenue in FY22, according to Registrar of Companies (RoC) reports. Revenue from website licence fees, scrap, and customer support fees totaled Rs 36 crore in FY22, while subscription fees saw a 14% increase in revenue.
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