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June 3, 2024

Lenskart Raises $200 Million in Secondary Round at $5 Billion Valuation

Lenskart, Asia’s largest eyewear retailer, has secured $200 million in a secondary investment round from Singapore’s Temasek and Fidelity Management and Research Company (FMR). This new funding indicates Temasek’s increased investment in Lenskart and marks FMR’s entry into the company’s investor base. With this latest transaction, Lenskart has attracted nearly $1 billion in capital over the past 18 months, making it one of the most significant growth-stage financings globally.

Industry sources estimate that Lenskart’s valuation in this round is approximately $5 billion, reflecting an 11-12% increase from its previous $4.5 billion valuation during a $100 million funding round in June last year. Avendus Capital acted as the exclusive financial advisor for Lenskart and its selling shareholders in this transaction.

Neeraj Shrimali, Managing Director and Co-head of Digital and Technology Investment Banking at Avendus Capital, praised Lenskart’s robust business model, highlighting its omnichannel experience, deep backward integration, and strong customer satisfaction. Shrimali noted that the investment from prestigious global investors emphasizes the unique and disruptive nature of Lenskart’s business model and underscores the anticipation surrounding its potential IPO in India.

Lenskart, under the leadership of co-founder Peyush Bansal, continues to deepen its market penetration in India while rapidly scaling its international presence across Asia, including Southeast Asia and the Middle East. The company’s innovative click-and-mortar business model offers an integrated customer experience across online platforms, mobile applications, and physical stores. With over 2,500 stores, 2,000 of which are in India, Lenskart is disrupting the eyewear industry by providing a seamless omnichannel experience.

Strategic Acquisitions and Technological Advancements

Lenskart faces competition from local and global players such as Titan Eyeplus, Specsmakers, Vision Express, Warby Parker, and the Luxottica Group. To enhance its operations and access new technologies, Lenskart has made several strategic acquisitions. Last year, the company acquired Tango Eye, an AI-based computer vision startup, to leverage visual AI technology in improving store and product experiences. Tango Eye’s technology analyzes CCTV footage for analytics, optimizes customer flow, and ensures adherence to procedures in stores, while automating quality tests in manufacturing.

In September, Neso Brands, a Lenskart subsidiary, acquired a stake in Paris-based eyewear brand Le Petit Lunetier for $4 million. This investment supports Le Petit Lunetier’s retail expansion in Europe and introduces the brand to Lenskart’s primary markets in Asia and the Middle East. In 2022, Lenskart also integrated Japanese brand Owndays into its portfolio in a deal valued at around $400 million. Owndays, a direct-to-consumer eyewear retailer, operates across 13 markets and recently opened its 500th store, benefiting from Lenskart’s support in supply chain, manufacturing, analytics, and omnichannel technology.

Financial Performance and Future Plans

Lenskart’s revenue from operations surged to Rs 3,788 crore in FY23, up from Rs 1,502 crore in FY22. The company managed to reduce its losses by 37.3% to Rs 64 crore in FY23 from Rs 102 crore in the previous fiscal year. This growth and reduced expenditure highlight Lenskart’s effective scaling and financial management strategies.

The company operates its largest manufacturing plant in Bhiwadi, Rajasthan, and another facility in Gurugram. Plans are underway to acquire land near Bengaluru airport for a new mega factory. In India, where 90% of the specs market is unorganized and there is a significant shortage of optometrists, Lenskart is addressing a critical need. Peyush Bansal, an alumnus of IIM-Bangalore and McGill University, founded Lenskart in 2010 to tackle this issue, aiming to provide affordable eyewear to the millions of Indians who need it but lack access.


Lenskart’s continued growth and strategic investments underscore its position as a leading player in the eyewear industry. With a robust business model, innovative technology integrations, and a clear focus on expansion, Lenskart is well-positioned to capitalize on future opportunities and potentially launch one of India’s most anticipated IPOs in the coming years.

Read more Business related news on R9 News
Jhumpa Lahiri

Jhumpa Lahiri

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