Lenskart to raise $500 mn from Abu Dhabi Investment Authority: Report

Abu Dhabi Investment Authority is about to close a deal to acquire a stake in eyewear brand Lenskart for $500 million, sources have told Bloomberg. The people asking not to be identified have shared that the sovereign wealth fund is finalising an agreement to buy a mix of existing Lenskart shares and new equity. 

Moreover, the deal which may be announced as early as this week will push Lenskart’s valuation to more than $4 billion. 

The Peyush Bansal-founded company is also backed by prominent investors such as KKR & Co., SoftBank Group Corp., Temasek Holdings Pte and PremjiInvest, among others.

Lenskart is set to close this deal amid the funding winter. According to several estimates, funding in late-stage start-ups has gone down by as much as 50 per cent compared to 2021 and the early part of 2022. Besides, the start-up ecosystem is also beset with other challenges such as large number of layoffs, valuations being questioned and getting reduced, among other things. 

Though the talks are in advanced stages, the final deal could see some changes, sources told Bloomberg. Representatives for ADIA and Lenskart declined to comment.

Peyush Bansal started Lenskart in 2010 along with Amit Chaudhary. Lenskart sells eyewear glasses and lens leveraging technology. The company agreed in June to buy a majority stake in Japan’s Owndays Inc. at a valuation of about $400 million. Bansal is also planning an initial public offering for the company within 48 months, he told Bloomberg earlier.

Also Read: Overfunding is a dangerous trend regardless of market conditions, says Inflexor Ventures