Lenskart in talks for $200 million infusion from Temasek, Fidelity, eyeing $5 billion valuation, says report

Lenskart is engaged in talks with Temasek and Fidelity for a $200 million funds infusion through a secondary share sale, The Economic Times reported citing sources.

If the homegrown eyewear company's talks with the Singaporean investment company and the American financial services corporation turn concrete, it would push Lenskart's valuation to around $5 billion.

A significant increase from its previous valuation, this move would also place Lenskart's worth at over three times that of competitor Warby Parker, the report added. A New York-based online eyewear retailer, Warby Parker went public on the NYSE in 2022 with a market cap of close to $1.55 billion.

Temasek Leads Investment

Temasek, which is already an existing investor in Lenskart, is expected to lead the investment round with an infusion of $125-150 million, one source told the paper. Fidelity, in its first-time investment in Lenskart, will contribute the remaining amount, they added.

In addition to Temasek and Fidelity's investment, other early investors in Lenskart, including TR Capital, KKR, and Avendus, may also consider divesting a portion of their holdings in this round. However, SoftBank, the largest institutional investor with a 16.5 percent stake, is not expected to sell any shares in this transaction, the report said.

Lenskart CEO Peyush Bansal and spokespeople from Fidelity and Temasek did not respond to queries, as per the report.

Previous Funding and Financial Performance

Last year, Lenskart raised a total of $600 million from investors such as Abu Dhabi Investment Authority (ADIA) and ChrysCapital, with a significant portion allocated to a secondary share sale. This sale allowed existing investors such as SoftBank and Chiratae Ventures to partially sell their stakes in the company.

Lenskart's revenue for FY24 is estimated at ₹5,500 crore, marking substantial growth from the previous fiscal year. The company's FY23 revenue doubled to ₹3,780 crore, with a profit of ₹260 crore compared to a loss of approximately ₹100 crore in FY22. Lenskart's audited financial statements for FY24 are pending submission to the Registrar of Companies.