India's Lenskart raises $220m at $2.5b valuation

Bay Capital and Chiratae Ventures also participated. It extends a $95 million round provided by KKR in May, which facilitated partial exits for TPG Growth and TR Capital. Total funding to date comes to more than $810 million, including a $275 million round led by SoftBank Vision Fund in 2019 at an estimated valuation of $1.5 billion.

Much of the plan involves international expansion. KKR is expected to be instrumental in this regard, with the private equity firm’s previous investments in this space including US players National Vision and 1-800 Contacts.

There are also expectations to expand a recently gained toehold in the United Arab Emirates, where Falcon Edge has established networks targeting a growing cross-border opportunity between the Middle East and North Africa (MENA).

“Lenskart has built a world-class fully backward-integrated omnichannel eyewear retail experience with extreme customer centricity," Navroz Udwadia, a co-founder at Falcon Edge, said in a statement.

"This customer obsession results in Lenskart’s distinctive NPS [net promoter scores], best-in-class customer repeats/retention and store productivity. We are thrilled to … helping them scale their business internationally, especially in the MENA region.”

Lenskart claims its addressable market includes 600 million people in India in need of vision correction and 4.5 billion globally. It estimates its target expansion geographies will represent a $15 billion market by 2025. In addition to MENA, the company has established a presence in the US and Singapore, where it now claims to be a key player in the broader Southeast Asian market.

There will be additional investment in technology, including artificial intelligence-enabled systems aimed at improving the customer experience. A “Lenskart Vision Fund” has been set up to this effect, which is mandated to invest in synergistic eyewear, eye care, and omnichannel retail start-ups.

Existing technologies include AI facial mapping tools and virtual 3D try-ons for frame recommendation, heat mapping tools for tracking foot traffic, and smart logistics and inventory systems. These services are available in 750 stores across 175 cities in India alone.

“[O]ur vision is to revolutionize the global eye-wear industry and evolve into one of the biggest and most admired consumer internet brands globally with our customers being a testimonial to our journey of innovation and disruption,” Peyush Bansal, founder and CEO of Lenskart, added.

“We’re already the largest eyewear player in India and in the top three in Singapore. Lenskart envisions to have 50% of India wearing its specs over the next five years and become the number one eyewear platform in Southeast Asia and Middle East over the next 18 to 24 months through organic and inorganic expansion.”

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• Topics
• South Asia
• Consumer
• Expansion
• Technology
• India
• Temasek Holdings
• Falcon Edge Capital
• Chiratae Ventures
• TMT