In a noteworthy secondary round, Indian eyewear company Lenskart has secured a $200 million investment from global investors Temasek and Fidelity. This significant infusion of capital marks an important milestone for Lenskart as it continues to draw substantial investments amidst a challenging funding environment for internet-led startups.
With this recent transaction, Lenskart has accumulated nearly $1 billion in capital over the past 18 months. This substantial inflow of funds comes at a time when growth-stage funding for internet-led startups has significantly declined, highlighting Lenskart’s robust market position and the confidence investors have in its business model. The major investment by Temasek and Fidelity, who have increased their stakes in Lenskart, underscores the company’s potential and expected growth path.
Details of the Secondary Round
The $200 million investment involved existing shareholders selling their stakes to Temasek and Fidelity. This secondary round follows previous ones where investors such as Chiratae Ventures, Premji Invest, Unilazer Ventures led by Ronnie Screwvala, Kedaara Capital, SoftBank, and KKR partially exited by selling stakes to ChrysCapital and the Abu Dhabi Investment Authority (ADIA). These transactions collectively raised $600 million, indicating strong ongoing interest from major investors.
Backed by SoftBank, Lenskart has demonstrated remarkable financial performance. The company’s revenue increased by 152%, from Rs 1,503 crore in FY22 to Rs 3,788 crore in FY23. During the same period, Lenskart managed to reduce its net loss from Rs 102 crore to Rs 64 crore, reflecting better operational efficiency and market growth.
The eyewear startup had previously experienced losses in FY22, despite a 66% increase in revenue, reporting a loss of Rs 102 crore for the year compared to a profit of Rs 28 crore the previous year. The turnaround in FY23 highlights Lenskart’s resilience and effective business strategies, paving the way for sustained growth and profitability.
Anticipation for Lenskart’s IPO
Shrimali also expressed optimism about the future, noting that late-stage tech companies in India will continue to attract strong investor interest, reflecting the robustness and excitement of the Indian consumer tech landscape. This sentiment aligns with the broader trend of growing investor confidence in the Indian tech ecosystem, driven by innovative business models and significant market opportunities.
Lenskart’s Growth and Vision
Founded in 2008 by Peyush Bansal, Amit Chaudhary, Neha Bansal, and Sumeet Kapahi, Lenskart has become a leading player in the eyewear market. The company joined the unicorn club in 2019 and has continued to expand its market presence and product offerings. Lenskart’s growth has been fueled by strategic investments from prominent backers, including SoftBank, Alpha Wave Global, Temasek, KKR, Kedaara Capital, and TPG.
Lenskart’s innovative model, which combines a strong online presence with a growing network of physical stores, has distinguished it in the eyewear industry. The company’s focus on affordable, high-quality eyewear, coupled with creative marketing strategies, has resonated with consumers, driving significant market penetration and brand loyalty.
The recent investment by Temasek and Fidelity not only reinforces Lenskart’s market position but also sets the stage for its future growth and expansion. As the company prepares for its IPO, it will aim to use the additional capital to enhance its product offerings, expand its market reach, and further cement its position as a leader in the eyewear industry.
The anticipation surrounding Lenskart’s IPO reflects broader market confidence in the potential of the Indian tech sector. As more late-stage tech companies attract investor interest, the Indian consumer tech landscape is set for continued growth and innovation, with Lenskart leading the charge.
