MUMBAI: The Indian eyewear brand Lenskart, backed by the Abu Dhabi Investment Authority (ADIA), is on the verge of a significant valuation increase, potentially reaching $6 billion.
The anticipated growth is linked to discussions surrounding a secondary share sale that could raise between $200 million and $300 million. According to reports, existing investors such as Fidelity and Kedaara Capital, along with a notable early investor, are contemplating increasing their stakes in the company.
In a secondary share sale, existing shareholders sell their stakes to new investors, with the proceeds benefiting the sellers rather than the company itself.
The mechanism allows current investors to realise gains while enabling new investors to acquire a stake in a rapidly growing enterprise. Lenskart’s trajectory has been notably upward, with revenue growth exceeding 40 per cent and a near profitability milestone, as highlighted by informed sources.
Enhancing market presence
Lenskart’s robust performance can be attributed to its strategic initiatives, including a substantial investment of $500 million secured from ADIA in March 2023. The investment not only provided the company with the necessary capital for expansion but also solidified ADIA’s position as a significant stakeholder with a 10 per cent share in the company.
With plans for an initial public offering (IPO) anticipated within the next two years, Lenskart is poised to enhance its market presence further.
The brand’s commitment to growth is exemplified by its recent expansion into the Middle East, marked by the opening of its first retail store at Yas Mall in Abu Dhabi in June 2024. The move not only cements Lenskart’s regional presence but also reflects its ambition to tap into new markets and diversify its consumer base.
Since its establishment in 2010, Lenskart has successfully raised a total of $1.08 billion through various funding rounds, demonstrating its appeal to investors and its potential for sustained growth.
As discussions for the secondary share sale progress, the eyewear brand stands at a pivotal moment, with the prospect of increased valuation and market expansion on the horizon.
The convergence of investor interest and strong financial performance positions Lenskart as a formidable player in the eyewear industry, with a promising future ahead.
