Abu Dhabi Investment Authority To Invest $500 Million In Lenskart, Hold 10 Per Cent Stake

This fundraise was done at a $4.2 billion valuation, according to news report. It will result in ADIA becoming one of the largest shareholders with a 10 per cent stake in Lenskart

Eyewear retailer Lenskart on Thursday said that it has signed definitive agreements for a $500 million investment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). This will made ADIA one of the largest shareholders in Lenskart. The investment will be made via a purchase of both primary and secondary shares.

This fundraise was done at a $4.2 billion valuation, according to news report. It will result in ADIA becoming one of the largest shareholders with a 10 per cent stake. A week earlier, news agency Bloomberg said that AIDA is nearing a deal to acquire a stake Lenskart Solutions Pvt. for about $500 million.

Peyush Bansal, founder and CEO of Lenskart, said, “It is still Day 1 at Lenskart. Vision Correction remains a big problem, and Myopia rates continue to grow rapidly, touching levels of as high as 80-90 per cent in some parts of Asia. Hence, we are still very early in our journey and have a lot of work to do to continue to make our desired impact in this area of critical need. And ADIA, with its patient and long-term approach to investing, is a perfect partner for us as we embark on the next phase of our journey.”

Completion of the transaction is subject to receipt of statutory and regulatory approvals. Upon completion of the transaction, Lenskart will have attracted close to $750 million capital over the last 12 months including recent fund-raising activities, making it one of the largest such growth stage financings globally.

Lenskart has grown into India’s largest optical brand and is backed by KKR & Co., SoftBank Group Corp., Temasek Holdings Pte, and PremjiInvest, among others.

The eyewear firm, which uses technology and supply chain automation to directly sell glasses and contact lenses to consumers, was co-founded in 2010 by Peyush Bansal, who is also its chief executive officer. The company agreed in June to buy a majority stake in Japan’s Owndays Inc. at a valuation of about $400 million, according to Bloomberg.

The company now has over 2,000 stores of which 1,500 are in India with the balance in Southeast Asia and the Middle East. Its new factory, which will play a significant role in manufacturing the 20 million pairs of eyewear that the company plans to ship next year, will also be ready to launch soon. Lenskart grew revenue by 60 per cent for the second year in a row and is now profitable.

Hamad Shahwan Al Dhaheri, executive director, Private Equities Department, ADIA, said that Lenskart has rapidly established itself as one of the largest and most innovative eyewear companies globally. “Given its unique technology-enabled and vertically integrated business model, we believe the company remains well positioned to build on its leadership position,” Shahwan added.