Homegrown PE fund ChrysCapital said it will invest $100 million in omnichannel eyewear maker Lenskart via primary and secondary share purchases. This investment brings Lenskart’s total capital raise to nearly $850 million in the past year.
The capital will help the company push its growth plans, it said. “The company is also expanding internationally across Asia and the Middle East. Further to expand its customer base, the company has embarked on vertical integration with a new manufacturing facility that will allow the brand to keep prices competitive, offer superior delivery times, and exceed customer expectations,” the release said.
In March, the company had raised $500 million from Abu Dhabi Investment Authority (ADIA) for a 10% stake, Mint had reported. It was last valued at more than $4 billion.
“Incidences of myopia are rapidly growing globally, especially in Asia, including India, with big unsolved problems of access, affordability, and awareness. We believe that with the help of technology, customer centricity, and big investments in supply chain and talent, we can eradicate the problem of vision correction. Eyewear as a lifestyle category is at a very early stage in its evolution, and there is a lot of opportunity to make glasses that can uplift our quality of life significantly as seen in shoes, apparel, and watches,” said Peyush Bansal, founder and CEO of Lenskart.
Lenskart had picked up a controlling stake in Japanese direct-to-consumer eyewear brand Owndays for $400 million in June 2022, to place itself as one of the largest omnichannel players in the category in Asia. Lenskart said the factory will produce 20 million pieces of eyewear annually, which it plans to ship starting 2024.
“With the acquisition of Owndays, there is an opportunity for Lenskart to expand across 10+ Asian countries in addition to the already large Indian market. This investment aligns with ChrysCapital’s strategy of backing founders that are category creators and who leverage technology to offer an outstanding customer experience,” said Rajiv Batra, senior vice president, ChrysCapital Advisors.
Founded in 2010, Lenskart is an omnichannel eyewear retailer with presence in Singapore, the UAE and other geographies. It sells prescription eyewear, sunglasses and contact lenses. The company is gradually shifting a large proportion of its manufacturing to India with a new plant commencing operations recently. Its subsidiary Owndays is a leading direct-to-consumer eyewear brand in Japan, Singapore and other South-East Asian markets. Together with Owndays, the company has a presence of around 2,000 stores across more than ten countries.
For ChrysCapital, one of the oldest homegrown PE funds in India which is investing out of its ninth fund of $1.4 billion it raised last year, this would be one of the biggest bets in a new age technology-led company. It has also backed companies such as Firstcry, Xoriant, among others.
Avendus Capital was the exclusive financial advisor to Lenskart and its shareholders.
