Lenskart's valuation could rise 20% to $6 billion in new share sale

Existing investors like Fidelity, Kedaara Capital, are among the parties looking to increase their stakes in the initial public offering-bound company

Initial public offering (IPO)-bound Lenskart's valuation could rise by 20 per cent to $6 billion if discussions for a $200-300 million secondary share sale go through, The Economic Times reported on Tuesday. 

 

The company previously raised $200 million from Fidelity Management & Research Company (FMR) and Temasek at a $5 billion valuation, and with that round, secured nearly $1 billion in the past 18 months. Despite the 2022-23 funding drought, it secured investments from KKR and the Abu Dhabi Investment Authority (ADIA). Overall, it recorded secondary deals of up to $650 million last year.  

 

 

The report added that existing investors like Fidelity, Kedaara Capital, are among the parties looking to increase their stakes in the company. In a secondary share sale, new investors buy shares from existing ones, with the capital going to the sellers, not the company.

 

The eyewear company recorded a growth in its revenue by over 40 per cent in the financial year 2023-24 and more than doubled its growth in FY23. It is exploring a potential IPO in about two years.

 

Since its inception in 2010, Lenskart has raised $1.08 billion and now operates over 2,500 stores, with 2,000 located in India.

 

With a focus on rapid expansion and deeper penetration in untapped Indian markets, Lenskart is also scaling its international presence in Asia. The Delhi-based startup has also been engaged in acquisitions to scale its operations. Some of the group’s acquisitions include artificial intelligence-based computer vision startup Tango Eye and a stake in Paris-based eyewear brand Le Petit Lunetier.

 

"This investment by renowned global investors underscores the uniqueness of Lenskart's disruptive model and highlights the excitement surrounding one of the most anticipated IPOs in India in the coming years,” Neeraj Shrimali, Managing Director and Co-Head, Digital and Technology Investment Banking, Avendus Capital, had said during the June funding round. Avendus Capital advised Lenskart on its $200 million secondary investment at the time.