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Temasek, Fidelity in talks to invest in Lenskart
Singapore’s investment giant Temasek and U.S. financial services firm Fidelity are in advanced talks to invest about $200 million in the Indian eyewear retailer Lenskart.
According to an ET report, the deal, which will be conducted through a secondary share sale, would boost Lenskart's valuation to an estimated $5 billion. Notably, this valuation is more than three times that of Warby Parker, a New York-based competitor.
The investment breakdown
The report said Temasek, an existing investor in Lenskart, is expected to invest between $125 and $150 million in this funding round. Fidelity is set to invest the remainder, marking its first investment in Lenskart. The deal is notable for its size, occurring at a valuation approximately 11-12% higher than Lenskart’s previous mark of $4.5 billion.
Are other investors involved?
Other early investors in Lenskart, such as TR Capital, KKR, and Avendus, might also consider selling part of their stakes. However, SoftBank, holding the largest institutional stake at 16.5%, will not be selling any shares in this round, the report said.
The round of investment is particularly significant as it doesn’t include any primary issuance; funds will exchange hands solely among investors.
Is Lenskart profitable?
Lenskart has shown robust financial growth, with an estimated revenue of Rs 5,500 crore in FY24, up from Rs 3,780 crore the previous year. The company turned a profit of Rs 260 crore in FY23 after a loss of about Rs 100 crore in FY22.
Lenskart is aggressively expanding domestically and internationally. In addition to its online platform, it operates approximately 1,500 retail outlets in India.
Last year, Lenskart acquired the Japanese firm Owndays to boost its presence in Southeast Asia and invested in the Paris-based Le Petit Lunetier. Additionally, CEO Peyush Bansal recently announced plans to construct a new mega factory near Bengaluru, following the opening of a large manufacturing facility in Rajasthan.