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Lenskart Secures $500 Million Investment from Abu Dhabi Investment Authority

The investment is expected to help Lenskart expand its reach and market share, both in India and abroad

Lenskart Secures $500 Million Investment from Abu Dhabi Investment Authority

Outlook Start-Up Desk

POSTED ON March 17, 2023 1:52 PM

Lenskart, a multi-channel eyewear brand, has announced that it has signed definitive documents for a $500 million investment from the Abu Dhabi Investment Authority (ADIA). This investment includes both primary and secondary shares, making ADIA one of the largest shareholders in Lenskart. With this investment, ADIA has reportedly acquired a 10 per cent stake in Lenskart, which has been valued at $4.2 billion.

Founded in 2010, Lenskart is one of the top omnichannel retailers and manufacturers of eyewear in India. The company has a strong offline presence with 1,500 stores nationwide and has recently expanded its presence outside India with 500 stores in other countries. The company has also been backed by several marquee investors, including SoftBank and Alpha Wave Incubation.

According to its annual financial statement filed with the Registrar of Companies (RoC), Lenskart's operating income it surged 66 per cent to Rs 1,503 crore in the financial year (FY) 22. However, with a surge of over 72 per cent in the total cost, the company recorded a loss of Rs 102 crore in FY22. The company made a Rs 29 crore profit in FY21. As the company's expenses ballooned, its cash outflow from operations increased by 56 per cent to Rs 183 crore in FY22.

Despite this, Lenskart said in its announcement that the company is now profitable and appears to be optimistic about its growth in the near future. The company is also betting big on a new factory, which it believes will play a significant role in manufacturing the 20 million pairs of eyewear Lenskart plans to ship next year. The factory is expected to launch soon.

The investment from ADIA is expected to help Lenskart further expand its reach and market share, both in India and abroad. ADIA is known for backing firms like Jio Platforms and its investment in Lenskart is a testament to the company's potential for growth and profitability. With this investment, Lenskart is poised to continue its growth trajectory and cement its position as a leading eyewear brand in India and beyond.

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