Lenskart Secures $200 Million Investment, Doubles Valuation and Eyes Expansion

Preeti Bali / 7:40 am / June 4, 2024

Indian eyewear giant Lenskart has secured a fresh $200 million infusion from prominent investors Temasek and Fidelity Management & Research Company (FMR). This investment signifies Temasek’s continued confidence in Lenskart, as they increase their existing stake in the company. FMR, on the other hand, joins Lenskart’s ownership structure for the first time.

Financial Strength Fuels Optimism

Avendus Capital, the financial advisor for this transaction, revealed that Lenskart has garnered nearly $1 billion in funding over the past year and a half. This latest investment is estimated to push Lenskart’s valuation beyond the $5 billion mark, reflecting a significant increase from its previous valuation of $4.5 billion. The company secured $100 million in funding last June, highlighting its ongoing growth trajectory.

Expanding Reach Beyond Borders

While India remains Lenskart’s primary market with over 2,000 stores, the company has actively expanded its footprint in international markets like Southeast Asia and the Middle East. The total store count surpasses 2,500, showcasing Lenskart’s commitment to global accessibility.

Strategic Investments and Acquisitions

Beyond its core business, Lenskart has also made strategic investments in recent years. Through its subsidiaries Neso Brands and TangoEye, the company has acquired stakes in brands like GeoIQ, Owndays, and Le Petit Lunetier. Notably, Neso, a Singapore-based subsidiary of Lenskart, itself secured $100 million in seed funding in May 2022.

Financial Performance Reflects Strong Fundamentals

Lenskart’s financial health has also seen significant improvement. The company’s revenue from operations skyrocketed to Rs 3,788 crore in FY23, a substantial leap from Rs 1,502 crore in FY22. Furthermore, by effectively managing expenses, Lenskart reduced its losses by 37.3%, bringing the figure down to Rs 64 crore in FY23 compared to Rs 102 crore in the previous fiscal year.

Focus on Domestic Market and International Expansion

Lenskart’s revenue primarily stems from eyewear sales, with its Indian collections contributing 59% of the total. The remaining income comes from international operations in regions like Singapore, Dubai, the US, and Southeast Asia. This breakdown highlights the company’s commitment to both its domestic market and international expansion plans.

Future Plans: A Mega-Factory on the Horizon

Recently, Lenskart’s CEO Peyush Bansal revealed plans to acquire land near the Bengaluru airport for the construction of a large-scale manufacturing facility. This move suggests Lenskart’s ambition to further streamline its operations and potentially cater to the growing demand for its products.


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