Eyewear retailer, Lenskart, has recently signed definitive documents for a $500 million investment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
ADIA is set to become one of the major shareholders of Lenskart by investing in both primary and secondary shares.
The transaction is subject to statutory and regulatory approvals before it can be completed. However, once completed, ADIA’s investment will add to the $250 million Lenskart has already raised in the last year. With recent fund-raising announcements, the total capital raised will be close to $750 million.
ADIA’s investment in Lenskart highlights the increasing demand for high-quality eyewear in Asia
Lenskart intends to use this significant investment to further expand its presence in India and expand its international presence in Asia and the Middle East.
This move is consistent with Lenskart’s strategic plan to expand its product offerings and provide cutting-edge eyewear technology to its customers.
The company has a strong presence in India and is now looking to expand its customer base in other parts of the world. The ADIA investment will provide Lenskart with the resources it needs to achieve these objectives and continue its growth trajectory.
Lenskart operates a large network of over 2,000 stores, 1,500 of which are in India and the remainder in Southeast Asia and the Middle East. The company is preparing to open a new factory soon, allowing it to expand its production capabilities and expand its product offerings.
Lenskart has reported a 60% increase in revenue for the second year in a row and profitability, indicating the success of its business strategy.
Regarding the ADIA investment, Peyush Bansal, Founder & CEO of Lenskart, expressed his excitement and stated that the company still has a long way to go in solving the critical problem of vision correction, especially given Asia’s rising prevalence of myopia.
He also stated that ADIA’s patient and long-term investment approach makes it the ideal partner for Lenskart as it continues its journey to make a significant impact in this area of need.
ADIA’s Executive Director of the Private Equities Department, Hamad Shahwan Al Dhaheri, expressed his belief in Lenskart’s potential and innovative business model.
He stated that Lenskart has quickly established itself as one of the largest and most innovative eyewear companies in the world and that it is well-positioned to maintain its leadership position with its unique technology-enabled and vertically integrated business model.
He also mentioned that ADIA’s investment in Lenskart is consistent with its strategy of investing in highly differentiated, market-leading businesses in Asia that are linked to the region’s consumption-driven growth and rapid technological advancements.
Avendus Capital served as the exclusive financial advisor to Lenskart and its shareholders on the transaction, providing strategic guidance and transaction support to the company throughout the process. EY was appointed as ADIA’s advisor on accounting and tax matters, providing financial due diligence and tax advice.
ADIA’s legal advisors were AZB & Partners and Allen & Overy, who provided legal counsel and support to ADIA on the transaction. KPMG and PwC acted as advisors on accounting and tax matters for Lenskart, while Rajaram Legal & Khaitan & Co. served as legal advisors to the company and its shareholders.
Lenskart is an omnichannel retailer and eyewear manufacturer that was founded in 2010. The company’s recent partnership with Owndays has expanded its global presence, making the combined entity one of the world’s largest fully integrated eyewear players.
This collaboration, along with the recent investment from ADIA, positions Lenskart for continued growth and success in the eyewear retail industry.
ADIA’s recent investment in Lenskart represents a significant milestone for the eyewear retailer. Lenskart will be able to accelerate its growth plans and expand its reach not only in India but also globally as a result of this investment. The transaction is being reviewed by statutory and regulatory authorities and is expected to close soon.
Lenskart’s remarkable growth and profitability demonstrate its industry-leading performance.
The company is well-positioned to expand its operations and strengthen its position as a leading player in the eyewear retail market, not only in India but also in other regions, kudos to the new investment from ADIA.
ADIA’s investment in Lenskart is a testament to the company’s potential for growth and its ability to tap into the growing demand for high-quality eyewear products, particularly in India and other parts of Asia.
With the necessary resources provided by this investment, Lenskart can continue its growth trajectory and further cement its position as a dominant player in the eyewear industry.
This investment also shows the UAE’s interest in investing in India as well as its willingness to support the growth of innovative businesses in the country. Ultimately, the investment is likely to provide ADIA with good returns while also contributing to India’s and the UAE’s economic growth.