Lenskart Secures $200M Investment from Temasek, Fidelity at $5B Valuation

Lenskart Valuation

Three points you will get to know in this article:

  • Temasek and Fidelity bought $200 million (1,671 crores approximately) in shares of Indian eyewear startup Lenskart.
  • Lenskart offers quality glasses at competitive prices and is expanding globally.
  • Lenskart to build new mega factory near Bengaluru to serve 1 billion customers by 2025.

Temasek and Fidelity Invest 200 Million in LensKart

Lenskart Logo

Temasek and Fidelity, both based in Singapore, have recently acquired shares worth $200 million in the Indian eyewear startup Lenskart. This transaction has placed a value of $5 billion on Lenskart, which is a leader in the Indian market and is also expanding globally. Temasek, already an investor in Lenskart, has increased its investment, while Fidelity has joined the company’s list of shareholders for the first time.

Lenskart's Recent Funding Rounds

Lenskart has recently received investments from Temasek and Fidelity, following a substantial $500 million funding from the Abu Dhabi Investment Authority last year. Over the past 18 months, Lenskart has raised nearly $1 billion in capital. The company was valued at $4.5 billion during a $100 million funding round in June of the previous year, as reported by Avendus Capital, which served as an advisor for the recent transaction.

Lenskart's Business Model and Expansion

Lenskart, established 13 years ago by Peyush Bansal and Amit Chaudhary, has become a leading player in the Indian eyewear industry. By providing high-quality glasses at competitive prices, Lenskart has successfully surpassed its competitors. The company produces its own glasses and contact lenses, and also holds exclusive licensing partnerships for various international eyewear technologies within India. The company led by Peyush Bansal operates in India, Southeast Asia, and the Middle East, marketing products both online and through a network of over 2,500 stores, with around 2,000 of them situated in India.

Lenskart's Financial Performance

Lenskart’s revenue from operations increased to Rs 3,788 crore in FY23, a significant rise from Rs 1,502 crore in FY22. This growth, combined with disciplined spending, allowed Lenskart to decrease its losses by 37.3% to Rs 64 crore in FY23 from Rs 102 crore in FY22. The company generates most of its revenue from eyewear sales, with 59% of its income coming from the Indian market and the remaining from international operations.

Lenskart's Expansion Plans and Acquisition Strategy

Lenskart is enhancing its market position by investing in different brands through its subsidiary, Neso Brands. Neso, which secured $100 million in seed funding in May 2022, has investments in brands such as GeoIQ, Owndays, and Le Petit Lunetier. Most recently, Peyush Bansal shared on LinkedIn that the company is planning to establish a new ‘mega factory’ by acquiring 25 acres of land within a 60-kilometer radius of Kempegowda International Airport in Bengaluru. The company’s new factory will enhance its manufacturing capabilities and help achieve its goal of serving one billion customers worldwide by 2025.

Lenskart, the leading Indian eyewear startup, has recently received 200million in investments from temasek and fidelity, valuing the the company at 5 billion. Over the past 18 months, Lenskart has raised nearly billion in capital, including a 500 million funding from the Abu Dhabi Investment Authority. The company has experienced significant revenue growth and reduced losses, while expanding its operations in India, Southeast Asia, and the Middle East. Lenskart is also diversifying its portfolio by investing in other eyewear brands through its subsidiary, Neso Brands, and plans to build a new manufacturing facility to support its global expansion goals. 

Manvendra Hada

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