Temasek of Singapore and Fidelity, a large financial services firm in the United States, invest $200 million in Lenskart through a secondary share sale, putting the company at $5 billion.
Lenskart, an eyewear retailer, has raised $200 million in secondary funding from Temasek and Fidelity Management & Research Company. Temasek is doubling down on its current investment in Lenskart, while Fidelity has joined the cap table.
According to Avendus financing, which served as the transaction’s advisor, Lenskart has raised about $1 billion in financing in the previous 18 months as a result of this acquisition.
According to a statement, the Singapore government’s sovereign fund Temasek and US financial services giant Fidelity have jointly invested $200 million in Lenskart through a secondary share sale.
Lenskart is thought to have been valued at more than $5 billion during the secondary fundraising. The firm, led by Peyush Bansal, was previously valued at $4.5 billion during a $100 million investment round in June last year. In March of last year, the company secured the largest secondary funding round.
ET initially reported on April 25 that Fidelity was in early talks to join Lenskart’s cap table as a new investor, while Temasek would double down on the company.
This is one of the largest secondary share sales for a late-stage business this year.
Lenskart has expanded its presence outside India into foreign areas such as Southeast Asia and the Middle East. The company claims to have over 2,500 outlets, with about 2,000 located in India.
In recent years, Lenskart has also invested in brands such as GeoIQ, Owndays, and Le Petit Lunetier through Neso Brands and TangoEye. Neso, a Singapore-based subsidiary of Lenskart, raised $100 million in seed capital in May of 2022.
Lenskart raised a total of $600 million last year from the Abu Dhabi Investment Authority and ChrysCapital, despite a general funding freeze for new economy firms. Of this, $450 million was raised through secondary share sales, allowing existing investors such as SoftBank and Chiratae Ventures to partially sell their ownership in the Gurgaon-based company.
Lenskart’s operating income increased to Rs 3,788 crore in FY23, up from Rs 1,502 crore the previous year. The company’s acceptable scale and regulated expenditure enabled it cut its losses by 37.3% to Rs 64 crore in FY23, down from Rs 102 crore in FY22.
In a secondary share sale, money is transferred between investors rather than going to the company’s coffers.
