Lenskart to raise more than $275 million from Softbank Vision Fund.
BENGALURU eyewear retailer Lenskart is currently increasing more than $275 million including some stake sale from early investors, the company said on Friday.
The capital 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 financial adviser to this trade.
Lenskart utilizes technology and artificial intelligence (AI) in its operations to interact with customers on its program and in stores, for the item, retail footprint, pricing, supply chain, manufacturing and logistics, the announcement said.
The company was founded in 2010, Sumeet Kapahi, Amit Chaudhary and by Peyush Bansal. It has around 2,700 employees, with offices in Mumbai, Delhi, 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 business and make a substantial impact in the lives of a billion people globally. If we can continue to make enthusiastic customers, we are committed to our vision and think, we’ll get there. Technology and AI are the enablers in what we do and wish to attain. Our strategy is to push on the bar in customer experience and surprise our clients. A large part of the investment will go towards building next generation technology and supply chain to deliver the following billion glasses with the highest quality at best price and most awesome customer experience.”
Together with the investment by Softbank Vision Fund, Lenskart’s valuation will cross $1.5 billion, business intelligence platform, Paper.vc stated, 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 thing that seems 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 evaluation 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 fiscal year 2018-19, the Faridabad-based company reported a 56% increase in earnings to $486 crore, from $310.9 crore in the last 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.