Lenskart in talks with ChrysCapital for $100M fundraising
- ByStartupStory | February 23, 2023
According to sources familiar with the matter, Lenskart, an eyewear retailer operating through multiple channels, is currently in discussions with ChrysCapital, a private equity fund, to secure a funding round of $100 million (approximately Rs 828 crore). While negotiations are still ongoing, no final agreement has been reached at this time.
If the investment goes through, it would be one of the biggest investments in a new-age entity made by ChrysCapital. The investment would bring Lenskart’s ongoing funding round to approximately $500 million. ChrysCapital has previously invested in internet companies such as Dream11, FirstCry, and Xpressbees.
According to sources, the ongoing funding round for Lenskart is mainly a secondary share sale, with existing stocks changing hands to new investors, and the money raised won’t go directly to the company. However, the round may also include a small primary capital infusion. The investment is being made at a valuation of $4 billion.
Usually, secondary share sales are executed at a lower price than the last valuation in a primary fundraise. For instance, Razorpay, a fintech firm, completed a secondary share sale of $75 million at a $6.5 billion valuation in May 2022, after receiving capital earlier at a valuation of $7.5 billion.
In recent years, Lenskart has carried out secondary share sales to facilitate partial exits for investors such as Chiratae Ventures and others.
According to sources, Lenskart recorded sales of around Rs 415 crore in December, of which Rs 183 crore was from its acquisition of Owndays last year. One person familiar with the matter said that Lenskart has experienced substantial sales growth, and its financial figures for the last fiscal year demonstrate the recovery made after the Covid-19 pandemic. Lenskart aims to use its Bhiwadi (Rajasthan) plant to manufacture products locally and ship significant volumes, the person added.
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