Lenskart Nears $500 Million Stake Sale to ADIA
- ByStartupStory | March 10, 2023
According to sources familiar with the matter, Abu Dhabi Investment Authority (ADIA) will be investing $350 million in Lenskart at a valuation of $4.2 billion, finally concluding negotiations that have been ongoing for several months. An official announcement is expected to be made next week. This figure represents over three times the market capitalization of Warby Parker Inc., a New York-based online seller of prescription glasses, contact lenses, and sunglasses, which went public on the NYSE in September of last year.
Lenskart, the omni-channel eyewear retailer, is set to raise its largest-ever capital of $450 million. The majority of the funding will come from a secondary sale of shares, with a smaller primary round consisting of growth equity. As part of the capital raise, some of Lenskart’s investors, including SoftBank Vision, Kedaara Capital, TR Capital, and Alpha Wave Global (formerly Falcon Edge), are seeking a partial exit. ET was the first to report on ADIA’s potential $400 million investment on December 12, and on February 23, it also reported that Chrys Capital is considering a $100 million investment.
According to Tracxn data, Lenskart has raised $1.05 billion in funding over 19 rounds. Once the investment from ADIA is finalized, the company will have a stake of nearly 10% in Lenskart. Presently, Kedaara Capital has approximately 9% ownership in Lenskart, while SoftBank and Premji Invest hold almost 19% and 10.4%, respectively. SoftBank, which was the first to invest in the company in 2019, is currently the largest investor in Lenskart.
The SWFs have been actively investing in various sectors, ranging from sports franchises and retail to renewable energy, electric vehicles, coffee chains, semiconductor foundries, and aircraft leasing companies. Mubadala, the UAE’s SWF, invested a record $30 billion in 2021. The fund also committed to investing £10 billion in the UK over five years and has already deployed half of it. Meanwhile, ADQ, Mubadala’s younger sister, has been acquiring businesses in the Middle East, North Africa, and Turkey. Even ADIA, Abu Dhabi’s most traditional and conservative SWF, has been investing at a rapid pace.
Lenskart is expected to achieve profitability at a consolidated level in FY23, and the company is on track to achieve 50% growth in its India business alone. According to Registrar of Companies (RoC) filings, the sale of eyewear products has been Lenskart’s primary source of income, accounting for around 94.3% of total operating revenue in FY22. The company’s income from subscription fees increased by 14%, while revenue from leases, website license fees, scrap, and customer support fees amounted to Rs 36 crore in FY22.
Follow Startup Story
Related Posts
