Singapore sovereign fund Temasek and US financial services major Fidelity have together invested $200 million in Lenskart through a secondary share sale at a valuation of $5 billion, the company said in a statement.
Lenskart said it was valued at $4.5 billion in its previous round of funding last year.
ET first reported on April 25 saying Fidelity was in advanced talks to join Lenskart cap table as a new investor while Temasek will double down on the company on top of its 5.5% stake.
This is among the largest secondary share sales at a late-stage startup this year. Other new-age companies such as mobility firm Rapido, online health supplement marketplace HealthKart and beauty products ecommerce platform Purplle are in the middle of closing over $100-million funding deals including secondary share sales.
In a secondary share sale, money changes hands between investors and does not go to the company.
Lenskart’s funding rounds
Last year, Lenskart had raised $600 million in total from Abu Dhabi Investment Authority and ChrysCapital amid a widespread funding winter for new economy ventures. Of this, $450 million was in secondary share sale, which allowed existing investors such as SoftBank and Chiratae Ventures to partially sell their stake in the Gurgaon-based firm.
In the latest financing, early investors in Lenskart such as TR Capital, Avendus and others are believed to have sold a portion of their holdings.
SoftBank – the largest institutional investor in the firm with a 16.5% stake – has not sold any stake in this round. It sold a part of its stake last year along with Chiratae Ventures.
Secondary transactions typically occur at a lower price to the last primary funding valuation. In Lenskart’s case, it has happened at a premium, underscoring growing investor interest in fast-growing companies with a path to profitability.
Lenskart’s financials
In FY23, Lenskart saw its consolidated operating revenue more than double to Rs 3,788 crore from Rs 1,502 crore a year earlier. The Gurugram-based company reduced its losses to Rs 64 crore in FY23 from Rs 102 crore in FY22.
On a standalone basis, Lenskart has been profitable and reported a net profit of Rs 138 crore in FY23, a 25-fold jump from the previous fiscal. Standalone operating revenue stood at Rs 2,375 crore.
Started in 2010, the company has raised nearly $2 billion in total, including secondary share sales.
Lenskart – which counts Premji Invest and Alpha Wave Global among its investors – has over 2,000 stores in India along with 500 others across Southeast Asia.
Lenskart acquired Japan’s Owndays in 2022 as it sought to expand in Southeast Asia. In September 2023, subsidiary Neso Brands invested $4 million for a “significant stake” in Paris-based omnichannel eyewear brand Le Petit Lunetier. Such an acquisition is typical of Neso, and Lenskart is expected to retail such global brands in all its markets.
Source: Economic Times