Lenskart gets $100 mn funding from PE firm ChrysCapital

Peyush Bansal-led multi-channel eyewear brand Lenskart has received $100 million in funding from private equity player ChrysCapital via primary and secondary share purchases. Upon completion of the transaction, Lenskart will have attracted close to $850 million in capital over the last 12 months, including recent fundraising activities.

The funding is crucial as it comes at a time when startups are struggling to raise money from investors amid the global downturn and changing business dynamics. The company said the latest round of funding will help the homegrown eyewear brand support its growth plans and strengthen its position as a global leader.

Peyush Bansal, founder & CEO of Lenskart, said the eyewear lifestyle category is still in the early stages of evolution. “It’s still Day 1 at Lenskart in our journey of transforming the way people see and experience the world.”

Just two months back, Lenskart, which claims to be the largest eyewear retailer in Asia, had signed definitive documents for a $500 million investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) via a purchase of both primary and secondary shares. This made ADIA one of the largest shareholders in Lenskart, which at that time was valued at $4.5 billion.

Other major backers of Lenskart include SoftBank and Alpha Wave Incubation. The company had raised ₹760 crore from Alpha Wave in 2022, while it received about $95 million worth of funding from KKR in 2021.

Lenskart says it continues to deepen its penetration in India, while rapidly scaling its international presence in Asia and the Middle East. The company has 2,000 stores, of which 1,500 are in India, and the rest in Southeast Asia and the Middle East. Its new factory, which will aim to make 20 million pairs of eyewear that it plans to ship next year, will also be ready to launch soon, says the company.

On June 30 last year, Lenskart tied up with Japanese direct-to-consumer eyewear brand Owndays to build the region’s largest Omni-channel eyewear business. It will take the group’s reach to 13 markets in Asia, including India, Singapore, Thailand, Taiwan, Philippines, Indonesia, Malaysia, and Japan.

Considering the popularity of eyewear brands, Lenskart rivals like Tata's Titan Eyeplus and Reliance Retail are also taking steps to boost their growth plans.

Lenskart had reported a 66% jump in operating income at ₹1,503 crore in FY22, as per its filings with the Registrar of Companies (RoC). However, its net loss stood at ₹102 crore on a rise in costs. In 2021, the company reported ₹29 crore net profit.

ChrysCapital is a leading India-focused investment firm, with around $5+ billion of assets under management across eight funds. The company says it has returned $6.5 billion to investors through over 70 exits, and its marquee investors include institutions with a long-term horizon such as sovereign wealth funds, endowments, pension funds, funds of funds, etc.