India-based eyewear e-commerce portal, Lenskart, has reached a definitive agreement with the Abu Dhabi Investment Authority (ADIA) to secure a 10% stake in exchange for a $500M investment.
The valuation of Lenskart will be set at $4.2B, and ADIA’s investment will include both primary and secondary deals, positioning the investment firm as one of Lenskart’s biggest shareholders. Following this transaction, Lenskart will have raised nearly $750 million in capital over the past year, which will mark it as one of the most substantial growth-stage financing efforts.
Peyush Bansal, Founder & 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 as high as 80-90 percent 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.”
Hamad Shahwan Al Dhaheri, Executive Director, Private Equities Department, ADIA said, “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. This investment is a continuation of our strategy of investing in highly differentiated, market-leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement.”
Lenskart’s latest funding round comes during a time of significant slowdown in deal flow activity in India’s startup market, particularly for late-stage startups. According to a report by Bain and Company, the number of $100M or higher rounds fell by 50% in India last year to only 48, with most of them being closed during the first half of 2022. The funding deal was advised by Avendus Capital for Lenskart and its shareholders, while EY acted as ADIA’s advisors on accounting and tax matters, and AZB & Partners and Allen & Overy provided legal advice to ADIA, according to The Economic Times.
With the new capital, Lenskart aims to expand its presence in India and scale up its international operations in Asia and the Middle East. The company currently operates over 2,000 stores, with 1,500 in India and the rest spread across Southeast Asia and the Middle East. The company is also planning to increase production at its upcoming factory, which has the capacity to manufacture 20 million pairs of eyewear annually, with shipping expected to begin in the next year.
