Singapore's Temasek, Fidelity buys $200 million worth of stake in Peyush Bansal-led Lenskart at $5 billion valuation

Singapore-based Temasek and Fidelity have recently purchased shares worth $200 million in the Indian eyewear startup Lenskart. 

The transaction has valued Lenskart, which leads the Indian market and is expanding overseas, at $5 billion. Temasek, an existing backer of Lenskart, has doubled down on its investment, while Fidelity joins the cap table for the first time.

Lenskart’s previous funding rounds

The recent investment from Temasek and Fidelity follows Lenskart's significant $500 million funding from the Abu Dhabi Investment Authority last year.

Over the last 18 months, Lenskart has attracted close to $1 billion in capital. The firm was last valued at $4.5 billion during a $100 million funding round in June of the previous year, according to Avendus Capital, which acted as an advisor for the recent transaction.

Lenskart market growth

Founded 13 years ago by Peyush Bansal and Amit Chaudhary, Lenskart has emerged as one of the largest eyewear players in India. It offers premium glasses at affordable prices, a strategy that has helped it outcompete rivals.

The startup manufactures its own glasses and contact lenses and serves as the exclusive Indian licensing partner for many global eyewear technologies.

The Peyush Bansal-led company operates in India, Southeast Asia, and the Middle East, selling products online and through more than 2,500 stores, with approximately 2,000 located in India.

Is it profitable?

Lenskart's revenue from operations surged to Rs 3,788 crore in FY23, up from Rs 1,502 crore in FY22.

The growth, which is coupled with controlled expenditures, helped Lenskart reduce its losses by 37.3% to Rs 64 crore in FY23 from Rs 102 crore in FY22.

The company’s primary revenue comes from eyewear sales, with 59% of its income derived from the Indian market and the rest from international operations.

Establishing mega factory

Lenskart continues to strengthen its market position by investing in various brands through its subsidiary Neso Brands. Neso, which raised $100 million in seed funding in May 2022, has investments in brands like GeoIQ, Owndays, and Le Petit Lunetier.

Recently, Peyush Bansal, in a post on LinkedIn, revealed plans the company is looking to establish a new 'mega factory' by acquiring 25 acres of land within a 60-kilometer radius of Kempegowda International Airport in Bengaluru.

The new factory will bolster the company's manufacturing capabilities and support its mission to cater to a billion eyes globally by 2025.