Visionary Move: Lenskart in Discussions to Secure $500M Investment from Abu Dhabi Investment Authority
News highlights
- Lenskart is an Indian multinational optical prescription eyewear retail chain, based in Faridabad.
- ADIA is reportedly close to finalising a deal to acquire a stake in eyewear startup Lenskart for nearly $500 Mn.
- The deal would likely value Lenskart at over $4 Bn and could be announced as soon as this week.
Middle Eastern sovereign wealth fund Abu Dhabi Investment Authority (ADIA) is in advanced talks to buy a stake in Indian eyewear retailer Lenskart for around $500 million. If the deal goes through, it would involve a mix of existing Lenskart shares and new equity. The company’s valuation would then surpass $4 billion, according to sources who spoke on condition of anonymity as the information is not public.
| Abu Dhabi Investment Authority | Lenskart |
| Type – Sovereign wealth fund
|
Founders: Peyush Bansal, Amit Chaudhary
|
| Industry – Institutional investor | CEO: Peyush Bansal (Nov 2010–) |
| Founded – 1976; 47 years ago | Founded: 2010 |
| Headquarters – Abu Dhabi, United Arab Emirates | Headquarters: Faridabad, Haryana, India |
| Key people – Sheikh Mohamed bin Zayed Al Nahyan, Chairman Sheikh Hamed bin Zayed Al Nahyan, Managing Director | Subsidiaries: Owndays Co., Ltd., MORE |
| Total assets – US$790 billion | Number of locations: 1000+ stores (2022) |
The announcement of the purchase is expected to be made as early as this week.
Lenskart is the largest optical brand in India, known for using technology and supply chain automation to sell glasses and contact lenses directly to consumers. Since its inception in 2010, the company has grown into a popular eyewear retailer, backed by prominent investors such as KKR & Co., SoftBank Group Corp., Temasek Holdings Pte, and PremjiInvest.
Despite the global downturn for tech companies that have prompted thousands of layoffs and a decrease in investment activity, Lenskart remains profitable. The company has plans to go public within the next four years, according to Peyush Bansal, its CEO and co-founder.
In a Bloomberg Television interview in July, Bansal stated that the company is considering an initial public offering as part of its long-term plans.
Lenskart has been expanding its reach through acquisitions as well. In June, the company agreed to purchase a majority stake in Japan’s Owndays Inc. for approximately $400 million. The move was part of its efforts to expand into Southeast Asia and East Asia.
Although discussions are advanced, the details of the deal may still change. Representatives for ADIA and Lenskart declined to comment. Nonetheless, the potential acquisition by ADIA marks a significant development in Lenskart’s growth trajectory, as it continues to expand its reach in the eyewear retail industry.
Lenskart slipped into the red in FY22 as it posted a consolidated loss of Rs 102.3 crore as against a profit of Rs 28.9 crore in FY21, largely due to a rise in its expenses.
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