Lenskart, an omnichannel D2C retailer, is on a mission to capture the niche area in Southeast Asia and the Middle East after a decade of trying to break India’s fragmented eyeglass industry.
Temasek Holdings and Falcon Edge Capital, which spearheaded a $220 million (about Rs 1,645 crore) investment in the company’s most recent round of funding, are fueling its ambition.
Early investors Bay Capital and Chiratae Ventures also participated in the most recent round of funding. The company’s headquarters are in Faridabad, Haryana.
Lenskart plans to use the funds to expand its omnichannel presence and operations in India, Southeast Asia, and the Middle East over the next three to four years.
The corporation also intends to increase its technological investments.
“We’re already the largest eyewear player in India and in the top three in Singapore. Lenskart envisions to have 50% of India wearing its specs over the next 5 years and become the number one eyewear platform in Southeast Asia and the Middle East over the next 18 to 24 months through organic and inorganic expansion,” Peyush Bansal, CEO at Lenskart, said in a statement.
There are reasons to be hopeful about Lenskart’s growth prospects.
According to ResearchAndMarkets, India and China now lead the worldwide eyeglasses market, which is predicted to reach $150.43 billion by the end of 2026.
The use of digital tools like virtual try-on and tele-optometry has gained traction in the eyewear e-commerce industry.
According to the statement, the market opportunity for Lenskart in the target geographies of Southeast Asia and the Middle East is estimated to reach over $15 billion by 2025.
The new financing takes the total amount raised in the round by Lenskart to $315 million (Rs 2,355.6 crore).
Lenskart reported in May that it had raised $95 million from global private equity firm KKR, providing early investors TPG Growth and TR Capital an exit.
According to data from VCCEdge, it has raised $723.39 million in equity capital to date.
Avendus Capital acted as an exclusive financial advisor to Lenskart and its shareholders for the transaction.
“Lenskart has built a world-class fully backward-integrated omnichannel eyewear retail experience with extreme customer centricity. This customer obsession results in Lenskart’s distinctive NPS (net promoter scores), best-in-class customer repeats/retention, and store productivity,” said Navroz Udwadia, cofounder and partner at Falcon Edge Capital in the statement.
Lenskart, which was founded by Bansal, Amit Chaudhary, and Sumeet Kapahi in 2010, has over 750 omni-channel outlets across India, as well as a presence in Singapore.