Abu Dhabi Investment Authority (ADIA) is all set to acquire a stake in the Indian eyewear brand Lenskart in exchange for $500 million. According to a Bloomberg report, The Middle Eastern Sovereign wealth fund is eying to buy new shares along with some of its existing ones. 

The deal is expected to value the company at $4 billion. 

However, both companies declined to comment on the prospective deal. 

The news came at a time when Indian tech companies are suffering from a fund crunch and laying off their employees as a cost-cutting measure. Last year, nearly 18,000 employees lost their jobs. The companies also suffered with valuations as well. They had to cut their margin to raise funds. For instance, Vijay Shekhar Sharma-led Indian fintech firm Paytm witnessed a 60 per cent drop in valuation since its initial public offering (IPO) in 2021. 

Founded in 2010 by Peyush Bansal, Lenskart is backed by SoftBank Group, Temasek Holdings Pte, Premji Invest and others. In June 2022, it agreed to buy a majority stake in Owndays Inc, a Japanese firm. 

In the financial year (FY) 2022, the company witnessed its operating revenue increase to Rs 1503 crore. However, its losses also surged to Rs 102 crore due to its international expansion. The company was profitable in its previous fiscal year. It recorded Rs 21 crore in profit. 

As per media sources, Lenskart is planning to have its IPO within two years.