Fidelity increases IPO-bound Lenskart valuation by 12% to $5.6 billion

A fund managed by United States-based financial services major Fidelity has increased the valuation of eyewear retailer Lenskart to $5.6 billion. This represents a 12 per cent increase in the firm’s fair value in Fidelity’s books, based on the latest valuation of the company as of September 30.

 

For the ongoing financial year, Lenskart reportedly achieved an annual revenue run rate of $1 billion.

 

In June this year, IPO-bound Lenskart raised $200 million in secondary investment from Singapore’s state-owned investment firm Temasek and Fidelity.

 

As value in startup companies grows, secondary sales offer a way to repay early investors.

 

The Peyush Bansal-led company was valued at about $5 billion in this round. The firm was last valued at $4.5 billion during a $100 million funding round in June last year. Over the past two years, Lenskart has attracted nearly $1 billion in capital, making it one of the largest growth-stage financings globally.

 

Lenskart continues to deepen its penetration in India while rapidly scaling its international presence in Asia. With a unique click-and-mortar business model, it is disrupting the eyewear industry by offering an omni-channel customer experience across online platforms, mobile applications, and stores. The company now has over 2,500 stores, of which 2,000 are in India.

 

Globally and in India, Delhi-based Lenskart competes with players such as Titan Eyeplus, Specsmakers, Vision Express, Warby Parker, and Italian eyewear conglomerate Luxottica Group.

 

The company has also been making acquisitions to scale up its operations and gain access to new technologies. Last year, it announced its acquisition of Tango Eye, an artificial intelligence-based computer vision startup, for an undisclosed sum.

 

In September last year, Neso Brands, a subsidiary of Lenskart, acquired a stake in the Paris-based eyewear brand Le Petit Lunetier for $4 million. This investment is funding Le Petit Lunetier’s retail expansion, solidifying its brand presence in Europe, and introducing the brand to Lenskart’s primary markets in Asia and the Middle East.

 

In 2022, Japanese brand Owndays became a part of the Lenskart group in a deal estimated at $400 million. The Tokyo-based direct-to-consumer eyewear retailer operates its own network of stores across 13 markets, ranging from Sydney to Dubai.