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ADIA in talks to acquire a stake in Indian eyewear retailer Lenskart for $500m

ADIA Deal to Accelerate lenskart's Expansion in India and Beyond

9 March 2023


Kunal Tyagi

India produced 3X more unicorns than China in 2022.png
  • The Abu Dhabi Investment Authority (ADIA) is negotiating to acquire a $500 million interest in the Indian eyeglasses retailer Lenskart.

  • The purchase is projected to value Lenskart at more than $4 billion, and the deal will combine existing shares and additional equity.

  • The largest optical retailer in India, Lenskart, uses technology and chain automation to sell eyeglasses and contact lenses to customers directly.

According to reports, Abu Dhabi Investment Authority (ADIA) is in advanced negotiations to purchase a share in Indian eyeglasses retailer Lenskart Solutions Pvt. for roughly $500 million. The purchase of a total of current shares as well as new equity in the firm will be included in the agreement. According to people with knowledge of the situation, the purchase might also be announced this week, increasing Lenskart's worth to more than $4 billion as a result of the acquisition.

Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi founded Lenskart in 2010. With a portfolio of eyewear products, the employer has developed into India's top optical brand. In addition to others, Lenskart is supported by KKR & Co., SoftBank Group Corp., Temasek Holdings Pte, and Premji Invest. The business promotes spectacles and contact lenses to customers as soon as possible by utilizing science and supply chain automation.

For Lenskart, which is finishing its fundraising round amid a global IT industry crisis that has resulted in layoffs and reduced investment activity, the cash from ADIA will be significant. According to CEO Peyush Bansal, despite the challenging market conditions, Lenskart has reported profitability and plans to have an initial public offering (IPO) within the next 48 months.

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The latest agreement with ADIA is anticipated to be far higher than the $100 million boost in funding that Lenskart was discussing with private equity group ChrysCapital, bringing the company's worth to above $4 billion. Although the negotiations are further along, insiders say that the deal's specifics might yet alter.

The Middle Eastern sovereign wealth fund's diversified portfolio of assets will grow with the addition of Lenskart through the use of ADIA. ADIA has previously made investments in a range of businesses, including those in logistics, transportation, hotel, and real estate. ADIA will get access to India's expanding eyewear industry and a position in one of the top optical brands in the nation by purchasing a stake in Lenskart.

In June, Lenskart and Owndays Inc. of Japan reached an agreement to purchase the bulk of the company for around $400 million. A previous phase of Lenskart's foreign market development included the purchase of Owndays. With the funding from ADIA, Lenskart will be able to move through with its growth objectives and expand its footprint in India and elsewhere if it can gain access to more resources.

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