Indian-based company Lenskart is in advanced discussions with Temasek and Fidelity to secure a $200 million investment through a secondary share sale, according to a report from The Economic Times, which cited sources familiar with the matter. This move is aimed at propelling the company to a valuation of around $5 billion, signaling a robust growth trajectory that surpasses its international peers.
Strategic Investments for Market Dominance
Lenskart’s latest funding round involves high-profile investors: Temasek, a Singaporean sovereign fund, and Fidelity, a U.S.-based financial services firm. If the talks materialize into a firm agreement, Lenskart’s market valuation would more than triple that of Warby Parker, a New York-based competitor that went public on the NYSE in 2022 with a market capitalization close to $1.55 billion.
Leading the Round
Temasek, which has previously invested in Lenskart, is expected to lead this round with an investment of between $125 million and $150 million. This funding round will also mark Fidelity’s first investment in the company, covering the remaining amount needed to reach the $200 million target. According to the report, other early investors in Lenskart, such as TR Capital, KKR, and Avendus, might also consider divesting some of their holdings. However, SoftBank, the largest institutional investor with a 16.5 percent stake, is not expected to sell any shares during this transaction.
Silence from Company Executives
Despite the scale of the potential funding, Peyush Bansal, CEO of Lenskart, along with spokespeople from Fidelity and Temasek, have yet to make any official comments regarding the ongoing discussions, maintaining a discreet approach during this critical negotiation phase.
Financial Growth and Projections
Lenskart has demonstrated formidable growth in recent years, having raised $600 million last year from various entities including the Abu Dhabi Investment Authority and ChrysCapital. This substantial funding facilitated a secondary share sale, allowing stakeholders like SoftBank and Chiratae Ventures to reduce their shares. For the fiscal year 2024, Lenskart has projected its revenue to reach ₹5,500 crore, a substantial increase from the ₹3,780 crore recorded in FY23, during which the company also turned a profit of ₹260 crore after a loss in the previous year.
Future Prospects
As Lenskart continues to expand its operations and increase its market share, the eyewear industry watches closely. The company’s aggressive growth strategies and ability to secure funds from leading global investors highlight its potential to become a dominant player in the global market. With a focus on innovative designs and cutting-edge technology, Lenskart is not just aiming for financial growth but also setting new standards in the eyewear industry.
