Indian optical prescription eyewear retail chain, Lenskart has reportedly raised a funding of $220 million in a round led by Falcon Edge Capital and Singapore’s Temasek Holdings. With PE firm KKR having made a recent investment of $95 million via a secondary transaction, the company has now secured a total of $315 million in this initiative.
Peyush Bansal, CEO of Lenskart, said that the eyewear firm, which was established in 2010 and presently has a valuation of $2.5 billion, will utilize a majority of the financing for expansion into the Middle East and Southeast Asia.
Bansal also stated that this will comprise both inorganic and organic expansion and the company also intends to expand further within India. Lenskart aims to emerge as the number one player in international markets by means of offline and online presence, added Bansal.
In this latest capital infusion, that was equally split between primary infusion as well as secondary share sale, Lenskart’s current investors, World Bank’s International Finance Corp. (IFC) and TPG Capital, have sold parts of their holdings in the Ghaziabad-headquartered company.
Sources cite that, in a secondary share sale, the funding does not flow into the company coffers as new investors utilize the capital for acquiring stakes from existing investors, who exit completely or partially.
As added by Bansal, Falcon Edge Capital and Temasek are very strategic to Lenskart in terms of what the company wants to do in the Middle East and Southeast Asia. Falcon has very good knowledge of the Middle East market and Temasek is a strong fund with high knowledge of the Southeast Asia market.
As per Falcon Edge Capital’s Co-founder and Partner, Navroz Udwadia, the fund is looking ahead towards working closely with the Lenskart team in scaling business at an international level, particularly in North Africa and the Middle East region.
This credits Lenskart’s world-class omnichannel eyewear retail experience with greatest customer centricity for what has been called the company’s distinctive NPS, best-in-class store productivity, and customer retentions and repeats, added Udwadia.