Lenskart, the eyewear retailer has raised $200 million in secondary investment from Singapore’s Temasek and Fidelity Management and Research Company (FMR).

This investment marks Temasek doubling down on its existing investment in Lenskart, while FMR joins the cap table. Following this transaction, Lenskart has attracted close to $1 billion in capital over the last 18 months, making it one of the largest growth-stage financing globally.

The valuation of the round is likely to have been about $4.5 billion - $5 billion in this round, according to industry sources.

Lenskart is looking to deepen its penetration in India while rapidly scaling its international presence in Asia including in Southeast Asia & Middle East. The company now has over 2,500 stores of which 2,000 are in India.

Avendus Capital was the exclusive financial advisor to Lenskart and its selling shareholders on this transaction.

Funding

Last year, Lenskart had raised $600 million in total from Abu Dhabi Investment Authority and ChrysCapital. Of this, $450 million was in secondary share sale, which allowed existing investors such as SoftBank and Chiratae Ventures to partially sell their stake in the Gurgaon-based firm. The IPO-bound firm was last valued at $4.5 billion during a $100 million funding in June last year.

SoftBank – the largest institutional investor in the firm with a 16.5% stake – has not sold any stake in this round.

Secondary transactions typically occur at a lower price to the last primary funding valuation. In Lenskart’s case, it has happened at a premium, underscoring growing investor interest in fast-growing companies with a path to profitability.

Lenskart’s financials

In FY23, Lenskart saw its consolidated operating revenue more than double to ₹3,788 crore from ₹1,502 crore a year earlier, according to news reports. The based company reduced its losses to ₹64 crore in FY23 from ₹102 crore in FY22.

The Peyush Bansal led startup, founded in 2010, the company has raised nearly $2 billion in total, including secondary share sales.

Acquisitions

The company has also been making a few acquisitions to scale up its operations and get access to new technologies. Last year, it announced its acquisition of Tango Eye, an artificial intelligence-based computer vision startup.

In September 2023, its subsidiary Neso Brands invested $4 million for a ‘significant stake’ in Paris-based omnichannel eyewear brand Le Petit Lunetier. Lenskart acquired Japan’s Owndays in 2022 as it sought to expand in Southeast Asia.

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