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Temasek, Fidelity Infuse $200 Mn Into Lenskart, Valuing the Unicorn at $5 Bn

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Singapore state investment firm Temasek and US-based Fidelity have jointly infused $200 million into Lenskart, an omnichannel eyewear unicorn. The investment underscores Temasek’s increased commitment to Lenskart, while Fidelity Management & Research Company (FMR) makes its debut on the company’s cap table, as per a statement from financial advisor Avendus.

This transaction values Lenskart at a substantial $5 billion, according to a report by Techcrunch. The investment follows recent reports indicating that both Temasek and Fidelity were in advanced stages of negotiations to back Lenskart with $200 million through a secondary share sale.

Over the past 18 months, Lenskart has attracted nearly $1 billion in capital, solidifying its position as one of the largest growth-stage startups in India. Commenting on the investment, Neeraj Shrimali, managing director and cohead of digital and technology investment banking at Avendus Capital, stated, “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.”

Founded in 2010 by Peyush Bansal, Lenskart has grown to become India’s largest omnichannel eyewear retailer. The company has a substantial customer base of 20 million in India and operates over 2,500 stores, of which around 2,000 are located within the country. Beyond its domestic market, Lenskart is rapidly expanding its footprint in Southeast Asia and the Middle East.

In the previous year, Lenskart secured a $100 million investment from private equity firm ChrysCapital and earlier in 2023, raised $500 million from the Abu Dhabi Investment Authority (ADIA).

The Delhi-NCR based startup reported impressive sales of INR 3,788 crore for the financial year 2022-23 (FY23), marking a 152% increase from INR 1,502.7 crore in the previous fiscal year. The company primarily generated 95% of its revenue from eyewear product sales. Additionally, Lenskart successfully reduced its net loss by 38%, down to INR 63.7 crore from INR 102.3 crore in the previous fiscal year.

This fundraising comes at a challenging time for late-stage funding, as startups in this segment managed to raise only $314 million across 13 deals in April, reflecting a 50% decline.