Indian private equity firm ChrysCapital is investing $100 million in Lenskart in a deal that includes both primary capital infusion into the omni-channel eyewear retailer and secondary share purchases from some of its shareholders.
With the transaction, Lenskart has raised nearly $850 million within the past year as it continues to widen its reach within India and expands internationally across Asia and the Middle East, ChrysCapital said in a statement.
"Lenskart has been instrumental in developing this (eyewear) market, driven by its unwavering commitment to exceptional customer satisfaction, affordability, and reliability. With the acquisition of Owndays, there is an opportunity for Lenskart to expand across 10+ Asian countries in addition to the already large Indian market," said Rajiv Batra, senior vice president, ChrysCapital.
The PE firm didn’t disclose the names of the selling shareholders. It didn’t also give a breakup of the primary and secondary portions.
The development comes three months after Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund of the Gulf emirate, invested $500 million in Lenskart at a valuation of $4.5 billion. ADIA’s investment in March included a mix of primary infusion and secondary share purchases from Kedaara Capital, PremjiInvest, TR Capital, Chiratae Ventures and Unilazer Ventures.
ChrysCapital manages $5 billion across nine private equity funds and has made more than 100 investments since 1999. It has realized $6.5 billion from over 75 exits in India. The firm raised its latest $1.4 billion ninth fund in 2022. In the last year, it completed two large investments: the buyout of IDFC Mutual Fund along with Bandhan Bank and Singapore sovereign wealth fund GIC, and the buyout of software engineering and digital IT services provider Xoriant.
Apart from Lenskart, ChrysCapital's investments in consumer-oriented companies include women’s ethnicwear W, mother and child products company FirstCry, fantasy gaming platform Dream Sports and beauty and personal care brand Wow Skin Science.
Lenskart, which claims to have a customer base of 20 million, is expanding its customer base and working on vertical integration with a new manufacturing facility.
VCCircle reported in August last year that Lenskart was planning to shift its entire manufacturing in Southeast Asia, including those of Japan's Owndays, to its largest manufacturing facility in Bhiwadi, Rajasthan. The new facility will allow the brand to keep prices competitive, improve delivery times and strengthen customer service.
“Eyewear as a lifestyle category is at a very early stage in its evolution, and there is a lot of opportunity to make glasses that can uplift our quality of life significantly as seen in shoes, apparel, and watches," said Peyush Bansal, founder and chief executive officer of Lenskart.
Lenskart, which also counts PremjiInvest, KKR and Temasek among its investors, managed to significantly better its operational health, with its core India operations, excluding subsidiaries in India or internationally, hitting breakeven with an operating profit for the first time in FY23.
The provisional FY23 numbers reflect that the company’s India business grew by about 65-70% from the year before. Its revenue likely stood between Rs 2,300 crore and Rs 2,500 crore in FY23, up from Rs 1,439 crore the year before.
Avendus Capital was the exclusive financial advisor to Lenskart and its shareholders for the latest transaction. Shardul Amarchand Mangaldas and Allen & Overy provided legal counsel to ChrysCapital, while EY offered financial and tax advisory services for the transaction. Lenskart received legal counsel from Rajaram Legal.
