Lenskart Secures $100 Million Funding to Expand Presence and Drive Growth in the Eyewear Market
- ByStartupStory | June 15, 2023
Leading eyewear startup Lenskart has recently raised $100 million in funding from private equity firm ChrysCapital through a combination of primary and secondary share sales. This significant investment comes at a time when access to capital has become challenging for private startups due to increased investor focus on profitability rather than just growth. The infusion of funds will enable Lenskart to fuel its growth trajectory and strengthen its position in the eyewear market.
In a noteworthy deviation from the norm, Lenskart has made a $100 million investment just two months after securing a substantial $500 million funding round from a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA). This latest investment further solidifies Lenskart’s standing as one of the most valued companies at $4.5 billion.
Gurugram-based eyewear company Lenskart continues its impressive funding streak, surpassing $1.6 billion in total funds raised. With nearly $850 million secured within the past year alone, Lenskart has ample resources to compete against industry giants such as Tata’s Titan Eyeplus and brace for the entry of Reliance Retail into the eyewear space. Notably, Lenskart experienced a key departure in March, with former employee Mohit Arora joining Reliance Retail to spearhead a luxury brand under their umbrella. With players like Coolwinks, Lawrence & Mayo, GKB Lens, and Ray-Ban in the market, Lenskart faces the challenge of scaling amidst tough competition.
With the significant funding it has raised, Lenskart, led by Peyush Bansal, plans to expand its offline presence and execute its omnichannel strategy in line with the growing trend among direct-to-consumer (D2C) startups. The company is also preparing to launch a new factory, aimed at manufacturing and shipping 20 million pairs of eyewear in the upcoming year. Lenskart’s latest fundraise follows its claim of achieving 60 percent revenue growth for the second consecutive year, ultimately leading to profitability. However, it’s worth noting that Lenskart faced losses in FY22, reporting a loss of Rs 102 crore compared to a profit of Rs 28 crore in FY21.
The global eyewear leader, supported by SoftBank, achieved a remarkable 66% surge in operating income in FY22, reaching Rs 1,503 crore, as reported by Tofler’s Registrar of Companies (RoC) filings. This surge demonstrates the brand’s strong confidence in its future growth and is further bolstered by investments from a prominent private equity firm, which will enhance Lenskart’s position and fuel its expansion plans.
“..With the help of technology, customer centricity, and big investments in supply chain and talent, we can eradicate the problem of vision correction. Eyewear as a lifestyle category is at a very early stage in its evolution, and there is a lot of opportunity to make glasses that can uplift our quality of life significantly as seen in shoes, apparel, and watches,” said Peyush Bansal, co-founder and CEO of Lenskart.
“ChrysCapital is excited to back a strong execution-focused management team that has established dominant market leadership in the eyewear segment… With the acquisition of Owndays, there is an opportunity for Lenskart to expand across over 10 Asian countries in addition to the already large Indian market,” said Rajiv Batra, senior vice president, ChrysCapital Advisors.
Founded in 2008 by Peyush Bansal, Amit Chaudhary, Neha Bansal, and Sumeet Kapahi, Lenskart joined the unicorn club in 2019. The company has received backing from notable investors, including SoftBank, Alpha Wave Global, Temasek, KKR, and TPG.
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