Lenskart seeks $200M from Temasek, Fidelity - targets $5B valuation

Lenskart is reportedly in discussions with Temasek and Fidelity to secure a $200 million investment. If Temasek & Fidelity $200 million Investments in Lenskart is finalised, it would come through a secondary share sale, potentially boosting Lenskart's value to $5 billion.

Temasek, an existing investor in Lenskart, is expected to lead the investment with around $125-150 million. Fidelity, making its first investment in Lenskart, would contribute the remaining funds.

In the upcoming investment round, additional Lenskart investors such as KKR, TR Capital, and Avendus may opt to sell off portions of their shares. Nevertheless, SoftBank, holding the most significant institutional stake at 16.5 percent, is unlikely to divest any of its shares.

This move would significantly increase Lenskart's value, making it more than three times higher than its competitor, Warby Parker, a New York-based eyewear retailer.

In the previous year, Lenskart secured $600 million in funding from investors like ChrysCapital and the Abu Dhabi Investment Authority, a portion of which involved a secondary share sale. This enabled existing investors, such as Chiratae Ventures and SoftBank, to offload some of their shares.

Lenskart is expected to achieve a revenue of ₹5,500 crore for the fiscal year 2024, indicating substantial growth compared to the previous year. In fiscal year 2023, the company's revenue doubled to ₹3,780 crore, accompanied by a profit of ₹260 crore, a significant improvement from the loss of approximately ₹100 crore in fiscal year 2022. However, Lenskart's audited financial statements for fiscal year 2024 are still awaiting submission to the Registrar of Companies.

Despite attempts to reach out, Peyush Bansal - Lenskart CEO and representatives from Temasek and Fidelity have not responded to queries regarding these developments.