Online eyewear retailer Lenskart is raising more than $275 million from Softbank Vision Fund, including some stake sale from early investors, the company said on Friday.
The funds will be used to augment Lenskart's tech capabilities and to strengthen its supply chain infrastructure, it said, in a statement. Avendus Capital was the exclusive financial advisor to this transaction.
Lenskart uses technology and artificial intelligence (AI) in its operations to interact with consumers on its app and in stores, for the product, retail footprint, pricing, supply chain, manufacturing and logistics, the statement said. The company was founded in 2010, by Peyush Bansal, Amit Chaudhary and Sumeet Kapahi. It has around 2,700 employees, with offices in Delhi, Mumbai, Kolkata and Bangalore.
Bansal, also the chief executive officer (CEO) of Lenskart said, in the statement, “Lenskart’s vision is to revolutionize the eye-wear industry and make a significant impact in the lives of at least a billion people globally. We are committed to our vision and think if we can continue to create enthusiastic customers, we will get there. Technology and AI are the biggest enablers in what we do and want to achieve. Our strategy is to continuously push the bar in customer experience and surprise our customers. A large part of this investment will go towards building next generation technology and supply chain to deliver the next billion glasses with the highest quality at best price and most amazing customer experience."
With the investment by Softbank Vision Fund, Lenskart's valuation will cross $1.5 billion, business intelligence platform, Paper.vc said, in a note. Information accessed by Paper.vc shows that the board of Lenskart Solutions Pvt Ltd, the parent entity of the eyewear company, passed a resolution on 3 December, 2019, approving the allotment of 22.9 million Series G compulsorily convertible cumulative preference shares to SVF II Lightbulb (Cayman) Ltd, a Cayman Islands-based entity that appears to be an investment vehicle of Softbank Vision Fund.
“As part of the deal, SVF appears to be investing ₹1,645 crore ($231 million) by paying ₹714 per share that we estimate gives the company a post-money valuation of $1.5 billion," Jayraj Patel, Analyst, Paper.vc, said, in the note.
Three months ago, Lenskart had received a total investment of ₹392 crore from two entities belonging to Kedaara Capital.
On a standalone basis, for the financial year 2018-19, the Faridabad-based company reported a 56% increase in revenue to ₹486 crore, from ₹310.9 crore in the previous financial year. Its net loss decreased significantly in FY 19, to ₹28 crore, compared to the ₹117.9 crore net loss the company reported in the previous financial year.