Lenskart, a leading eyewear retailer, is currently in discussions with Temasek and Fidelity for a substantial investment of $200 million. This funding, part of a secondary share sale, could significantly increase Lenskart's market valuation to approximately $5 billion, according to The Economic Times.
Details of the Investment
Temasek, an existing investor in Lenskart, is expected to invest between $125 and $150 million, taking the lead in this round of funding. Fidelity, a new investor, is set to contribute the remainder. This move could triple Lenskart’s valuation compared to its main competitor, Warby Parker, which is currently valued at about $1.55 billion.
Possible Changes in Shareholding
Other early investors in Lenskart, such as TR Capital, KKR, and Avendus, might also sell some of their shares. However, SoftBank, which holds a 16.5% stake and is the largest institutional investor, is not planning to divest any shares during this round.
Financial Growth and Previous Investments
In the last funding round, Lenskart raised $600 million from entities like the Abu Dhabi Investment Authority (ADIA) and ChrysCapital. A significant part of this funding also facilitated a secondary share sale, allowing early backers like SoftBank and Chiratae Ventures to sell part of their stakes.
Current Financial Standing
For the fiscal year 2024, Lenskart’s revenue is projected at ₹5,500 crore, a substantial increase from ₹3,780 crore in FY23. The company turned a profit of ₹260 crore in FY23, bouncing back from a ₹100 crore loss the previous year. Detailed financial statements for FY24 are yet to be submitted.
