LensKart said Wednesday it has signed a definitive agreement to raise $500 million from the Abu Dhabi Investment Authority amid a market downturn as the Indian eyewear retailer ramps up its offerings and scales into international markets. .
An extension of last year’s round, the investment will help the startup maintain its $4.5 billion valuation. ADIA’s investment includes a secondary purchase of shares, the startup said.
The 12-year-old Indian eyewear startup, which counts SoftBank and Alpha Wave Global among its backers, sells glasses, sunglasses, contact lenses and other eyewear accessories. By offering premium glasses at affordable prices, he has become one of the biggest eyewear players in India.
Peyush Bansal, co-founder and CEO of LensKart, said in an interview with TechCrunch that LensKart brought more efficiencies to the eyewear department, which helped keep prices low. It has built expertise in manufacturing eyeglasses and contact lenses and is the exclusive licensing partner of global companies in India for many technologies, he said.
Currently operating in India, Southeast Asia and the Middle East, the startup sells eye products online and in over 2,000 stores, three-quarters of which are in India. The start-up is opening more than seven of his stores a week, and next year he expects to produce 20 million pairs of eyeglasses.
Hundreds of millions of Indians need vision correction, yet only a fraction of this population currently wears glasses or contact lenses. Bansal said the company will continue to expand its operations in India and existing international markets.
But what’s driving LensKart and the eyewear industry at large is how quickly Indians are adopting glasses, he said. People say he buys as many as four pairs of glasses every two years, and this number has increased to his five, he said, noting a similar popularity with buying sneakers. bottom.
The startup is also gradually expanding its premium offerings thanks to its acquisition of Japanese eyewear brand OwnDays and new in-house brands such as John Jacobs.
LensKart posted more than $180 million in revenue for the fiscal year ending March 2022, according to a person familiar with the matter, and currently has a monthly uptime rate of about $5 million. Bansal declined to comment on sales figures, but said the startup is profitable.
“LensKart’s next phase will be the journey from 10 to 100, to build a diverse culture that enables massive innovation and execution while solving the major bottlenecks that prevent high-quality vision for everyone. I hope that we will continue to work hard with the same level of humility and dedication so that we can ultimately change the lives of billions of people,” Bansal said.
The funding for LensKart comes at a time when deal flow activity has slowed significantly in the Indian startup market, especially in late-stage startups. In India, the number of rounds worth $100 million or more last year fell 50% to just 48, most of which he closed in the first half of 2022, Bain & Company said in a report Wednesday. .
As global hedge and crossover funds became more cautious in the second half of 2022, the share of investments by leading investors also fell to less than 20% (from more than 25% in 2021), according to a consulting firm.
LensKart is also cautious about spending, Bansal said, but argued that the mood of the funding cycle is less important for a startup with a long-term vision. he said he was prepared to do so.
“Lenskart is rapidly establishing itself as one of the world’s largest and most innovative eyewear companies. This investment builds on our strategy to invest in highly differentiated, market-leading businesses in Asia that are linked to the region’s consumption-driven growth and rapid technological advancements. continuation,” statement.
