Lenskart to raise $500 million from ADIA
ADIA's investment in Lenskart would significantly boost the company's growth plans
New Delhi: The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, is reportedly close to buying a $500 million stake in Indian eyewear startup, Lenskart. The move would mark ADIA’s first investment in India’s burgeoning technology sector and is expected to boost Lenskart’s valuation to over $2 billion.
Lenskart was founded in 2010 by Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi to provide affordable, high-quality eyewear to Indian consumers. The company has since expanded rapidly, with over 700 retail stores across India, as well as a thriving e-commerce platform. Lenskart also has a significant presence in Singapore, where it operates under the brand name, Glassic.
The eyewear market in India is estimated to be worth around $3 billion, and is growing rapidly. Lenskart has positioned itself as a market leader, offering a wide range of affordable eyewear options, as well as a virtual try-on feature that allows customers to see how glasses will look on their face before purchasing. The company has also launched its own range of contact lenses and is reportedly exploring the possibility of expanding into the prescription drug market.
ADIA’s investment in Lenskart would significantly boost the company’s growth plans, allowing it to expand further into new markets. It would also mark a significant milestone for the Indian technology sector, which has been attracting increasing interest from international investors in recent years.
The potential deal comes amid a wave of investments in Indian startups, particularly in the e-commerce and fintech sectors. Last year, Reliance Industries, owned by India’s richest man, Mukesh Ambani, raised over $20 billion from investors, including Facebook, Google, and Qualcomm, for its digital business arm, Jio Platforms. This was followed by a flurry of investment activity in startups such as Flipkart, Zomato, and Byju’s as global investors sought to tap into India’s growing digital economy.
However, the Indian technology sector has faced some challenges in recent years, including regulatory hurdles and the impact of the COVID-19 pandemic. Nevertheless, many investors remain bullish on the sector’s long-term prospects, which is expected to continue growing rapidly in the coming years.
Overall, ADIA’s potential investment in Lenskart is a positive development for the Indian technology sector and could pave the way for further investment in the country’s rapidly expanding startup ecosystem.