Lenskart bags $500 Mn from Abu Dhabi Investment Authority

Multi-channel eyewear brand Lenskart on Thursday announced signing definitive documents for a $500 million investment from the Abu Dhabi Investment Authority (ADIA), which also backs firms like Jio Platforms.

The transaction includes both primary and secondary shares, making the ADIA one of the largest shareholders in Lenskart, according to a joint press release. The ADIA has reportedly acquired a 10% stake in Lenskart, which has been valued at $4.2 billion.

Founded in 2010, Lenskart has emerged as one of the top omnichannel retailers and manufacturers of eyewear in India. In addition to its online focus, the company also has a strong offline presence with 1,500 stores across the country.

In recent years, the company has also expanded its presence outside the Indian shores. In July 2022, the company acquired a stake in the Japanese direct-to-consumer brand Owndays. The company also has a presence in the Middle East. Lenskart says it has now 500 stores outside India.

Lenskart has also been backed by several marquee investors, including SoftBank and Alpha Wave Incubation. In April 2022, the company raised Rs 760 crore or $100 million from Alpha Wave, almost one year after raising $95 million in a round led by KKR.

Lenskart’s operating income surged 66% to Rs 1,503 crore in FY22, according to its annual financial statement filed with the Registrar of Companies (RoC). With a surge of over 72% in the total cost, the Peyush Bansal-led company recorded a loss of Rs 102 crore in FY22. Lenskart had made a Rs 29 crore profit in the fiscal year FY21.

As the company’s expenses ballooned, its cash outflow from operations increased by 56% to Rs 183 crore in FY22. On a unit level, Lenskart spent Rs 1.15 to earn a single unit of operating income.

Lenskart, however, in today’s announcement said that the company is now profitable.

The startup also appears to be optimistic about its growth in the near future. The company is also betting big on a new factory, which it believes will play a significant role in manufacturing the 20 million pairs of eyewear Lenskart plans to ship next year. The factory is expected to launch soon.