Lenskart nears $500Mn funding from Abu Dhabi’s sovereign wealth fund, ADIA

India’s Lenskart, which is eyeing to develop into one of many largest eyewear makers globally, may get a significant increase in the direction of that ambition. In accordance with a report in Bloomberg, the Abu Dhabi Funding Authority (ADIA) is ready to amass a big stake within the Indian eyewear retailer. The sovereign wealth fund is ready to take a position almost $500 million, marking one of many extra vital investments in an Indian startup by a overseas entity.

No official feedback have been heard from anybody concerned.

In accordance with the report, ADIA has almost sealed the deal to purchase the stake in a mixture of current shares and new fairness. The deal is but to be set in stone, however offered that there aren’t any additional vital modifications, the deal would put the valuation of the 13-year-old Lenskart at greater than $4 billion. A ultimate announcement could also be made as early as this week.

As the biggest optical model in India, the 13-year-old Lenskart has carved a distinct segment of its personal within the eyewear retail sector within the Indian market. At present, it’s identified to supply a variety of merchandise together with glasses, contact lenses, and sun shades, principally within the inexpensive eyewear phase, but in addition more and more going premium. The corporate has grown quickly in recent times, with an offline community of over 750 bodily shops throughout India, coupled with an already robust on-line presence.

With the funding from ADIA, the eyewear retailer can have entry to the required sources to speed up its progress and develop its operations past India. Along with the monetary funding, the deal may also present Lenskart with entry to ADIA’s intensive community and sources, which is able to profit the startup when a number of startups and enterprises have wilted underneath the funding winter. Amidst falling shares and valuations throughout an financial slowdown, buyers have tightened their purse strings and adopted a extra cautious method. This, in flip, resulted in a fall in funding exercise, a drought in funding, and mass layoffs.

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For its half, Lenskart has raised over $900 million by way of a number of funding rounds until date, and counts the likes of SoftBank Group Corp, KKR & Co, PremjiInvest, and Temasek Holding Pte as its buyers. Whereas it’s worthwhile, Lenskart clocked a web lack of ₹102.3 crores in FY22 and is planning an IPO providing inside the subsequent 48 months. The acquisition can be a big milestone for ADIA, which has been actively searching for funding alternatives in India’s quickly rising startup ecosystem. The funding in Lenskart is anticipated to offer ADIA with publicity to considered one of India’s fastest-growing industries, in addition to a chance to associate with a number one participant within the house.