Early investors in Lenskart, including Premji Invest, Kedaara Capital, TR Capital, and SoftBank, are seeking to sell a portion of their ownership to Abu Dhabi Investment Authority, according to five persons with direct knowledge of the transaction.
The secondary transaction puts the eyewear store between $3.5 and $3.7 billion, which is less than the company’s primary valuation of $4.5 billion, according to individuals who requested anonymity.
“Of the $400 million fundraising round by ADIA, almost $350 million will be returned through a secondary share sale in which investors such as Kedaara, Premji, TR, and SoftBank will seek to partially cash out,” stated the first of the five individuals described above. The round will also include $75-$100 million in main capital.
According to Tracxn data, Lenskart has raised more than a billion dollars in equity funding from investors across 19 rounds. Among its investors are Alpha Wave Global (previously Falcon Edge), KKR, Temasek, Bay Capital, and Chiratae.
“Primarily, some of the company’s series A investors are seeking exits,” stated a second person.
In August, $12.5 million was raised from Ravi Modi Family Trust. Prior to then, it raised $100 million from Alpha Wave via a spherical. Last year, it also raised capital from Epiq Capital ($25 million) and Avendus Capital ($28 million).
In July 2021, it raised $315 million at a valuation of $2.5 billion from investors including Temasek, Falcon Edge, Bay Capital, KKR, and Chiratae Ventures.
“The business is profitable and requires little cash; consequently, this is essentially a secondary round. “Since the agency’s initial public offering plans have been postponed due to market conditions, early investors are being provided an escape,” a third party added.
“The company may consider inorganic development options in technology and retail,” he continued.
The representatives of ADIA, Kedaara, and SoftBank declined to comment. The representatives for Lenskart, Premji Invest, and TR did not respond to emails sent to them.
The company, founded in 2011 by Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi, recently purchased Japanese eyeglasses business Owndays in a $400 million cash and stock transaction. Lenskart now provides access to 13 Asian markets, including India, Singapore, Thailand, Taiwan, the Philippines, Indonesia, Malaysia, and Japan, as a result of the merger.
Lenskart launched its at-home service in August with the intention of disrupting the eyeglasses industry. It is available for purchase in 23 places around India. The service provides end-to-end solutions, including eye exams, body tests, product selection, and last-mile delivery.
The funding has allowed Lenskart maintain a market share more than 25 percent. The company, which competes with the Tata group’s Titan Eyeplus, has approximately 1,100 stores compared to Titan’s 760.
With the Tata group pouring its weight behind the flagship Tata Neu to drive its online strategy, all of the brands, including Titan Eyeplus, are projected to grow substantially.
