Temasek, Fidelity purchase Lenskart shares worth $200 mn in secondary deal

Bengaluru: Singapore's state-owned investment firm Temasek and Fidelity Management & Research Company have purchased Lenskart shares worth $200 million in a secondary transaction.

The investment marks Temasek doubling down on its existing holding in Lenskart, while Fidelity Management & Research Company (FMR) joins the cap table, Avendus Capital said in a statement.

Avendus Capital was the exclusive financial adviser to Lenskart and its selling shareholders on this transaction. With the latest deal, Lenskart has attracted close to $1 billion in capital over the last 18 months. Avendus did not identify the existing investors who sold the shares.

What does this investment mean?

"Lenskart has built one of the most defensible businesses with an omnichannel experience, deep backward integration, and a steadfast commitment to customer satisfaction," said Neeraj Shrimali, managing director and co-head of digital and technology investment banking, Avendus Capital. "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."

Shrimali added that more late-stage tech companies will continue to garner strong investor interest, underlining the robustness of the Indian consumer tech landscape.

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

Lenskart did not immediately respond to Mint's request for comment.

Founded in 2010, Gurugram-based Lenskart is an omnichannel eyewear retailer with presence in Singapore, the UAE and other geographies. It sells prescription eyewear, sunglasses and contact lenses. The company is gradually shifting a large proportion of its manufacturing to India with a new plant having commenced operations recently.

Lenskart's subsidiary Owndays is a leading direct-to-consumer eyewear brand in Japan, Singapore and other southeast Asian markets. Together with Owndays, the company has more than 2,000 stores across more than ten countries.

Also Read: ADIA Nears Buying $500 Million Stake in India’s Lenskart

In its attempt to deepen presence in India, Lenskart has been ramping up efforts to build its omnichannel strategy to sell products across online, mobile applications and stores. It also recently partnered with Zomato-backed Blinkit to sell its products via the quick commerce segment.

In FY23, the company's operating revenue more than doubled to ₹3,788 crore from ₹1,502 crore a year earlier. Its losses also narrowed to ₹64 crore from ₹102 crore in FY22.