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Temasek and Fidelity invest $200M in Lenskart, valuing it at $5B.

ByYasmeeta Oon

Jun 4, 2024
Temasek and Fidelity invest $200M in Lenskart, valuing it at $5B.

Temasek and Fidelity invest $200M in Lenskart, valuing it at $5B.

Temasek and Fidelity have purchased shares worth $200 million in the Indian eyewear retailer Lenskart, according to a statement by the startup’s financial adviser, Avendus. This substantial investment further solidifies Lenskart’s position as a leading player in the eyewear industry, both in India and globally.

The transaction, which values Lenskart at $5 billion, was confirmed by the startup’s co-founder and chief executive, Peyush Bansal, in a text message to TechCrunch. Avendus, which also advised selling shareholders on the deal, did not disclose the investors who sold the shares.

Temasek has a history of investing in Lenskart. This latest round of funding comes on the heels of a significant $500 million investment by the Abu Dhabi Investment Authority last year. Over its 13-year history, Lenskart has attracted numerous high-profile backers, including SoftBank and Alpha Wave Global, contributing to its rapid growth and expansion.

Lenskart has distinguished itself in the crowded eyewear market by offering premium glasses at affordable prices, a strategy that has enabled it to undercut competitors and expand its market share. The startup sells a variety of products, including eyeglasses, sunglasses, contact lenses, and other accessories.

One of the keys to Lenskart’s success has been its ability to keep prices low while maintaining high quality. The company achieves this by manufacturing its own glasses and contact lenses and holding exclusive licensing rights for many global eyewear technologies in India. This vertical integration has allowed Lenskart to bring greater efficiency to the sector, a point highlighted by Bansal in an earlier interview with TechCrunch.

Lenskart’s operations span India, Southeast Asia, and the Middle East. The company sells its products both online and through more than 2,500 stores, the majority of which are located in India. This extensive network has helped Lenskart become one of the largest eyewear retailers in the region.

Despite its significant market presence, Bansal noted that India’s vision correction market remains largely underserved. He claimed that only a small percentage of the population currently uses glasses or contact lenses, even though hundreds of millions require them. This represents a substantial growth opportunity for Lenskart as it seeks to address this unmet need.

AspectDetails
Latest Investment$200 million by Temasek and Fidelity
Valuation$5 billion
Previous Major Investment$500 million by Abu Dhabi Investment Authority
Number of StoresOver 2,500
Market RegionsIndia, Southeast Asia, Middle East
Major BackersSoftBank, Alpha Wave Global, Temasek, Abu Dhabi Investment Authority
  • Vertical Integration: Lenskart manufactures its own eyewear and holds exclusive licensing rights for many global technologies, allowing for cost control and quality assurance.
  • Market Penetration: With a significant number of stores and a robust online presence, Lenskart has established a strong foothold in multiple regions.
  • Affordable Pricing: By offering premium products at competitive prices, Lenskart has been able to attract a broad customer base.
  • Expansion Plans: The company is looking to further expand its market presence both within India and internationally.
  • Underserved Market: With a large portion of the Indian population needing vision correction, Lenskart has a substantial growth opportunity.

Neeraj Shrimali, MD of digital and investment banking at Avendus Capital, emphasized the significance of this latest investment. “This investment by renowned global investors underscores the uniqueness of Lenskart’s disruptive model and highlights the excitement surrounding one of the most anticipated IPOs in India in the coming years,” he stated.

Shrimali also expressed optimism about the future of Lenskart and its CEO, Peyush Bansal. “We are excited about what lies ahead for Lenskart & Peyush. In our view, more late-stage tech companies will continue to garner strong investor interest, demonstrating the robustness and excitement of the Indian consumer tech landscape.”

Lenskart’s journey from a startup to a market leader in the eyewear industry has been marked by strategic investments, innovative business models, and a focus on efficiency and affordability. The recent $200 million investment by Temasek and Fidelity is a testament to the company’s potential and the confidence that global investors have in its future. With plans for further expansion and a market ripe with opportunity, Lenskart is well-positioned to continue its growth trajectory and solidify its status as a dominant player in the eyewear industry.

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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