IFC commits $25m to India's VC-backed Lenskart
The International Finance Corporation (IFC), the investment arm of the World Bank, has committed $25 million to Indian online eyewear retailer Lenskart.
IFC's investment will be part of Lenskart's ongoing funding round, with additional existing and new investors also contributing capital. Lenskart's current investors include TPG Capital, which led the company's INR1.35 billion ($21.9 million) Series C round in 2014, along with IDG Ventures, TR Capital, and Unilazer Ventures.
Lenskart will use the investment to expand its product distribution capabilities in India through its third-party franchisee network, particularly into tier-two and tier-three cities, according to a disclosure. The funding will also support the construction of Lenskart's new facility for manufacturing lenses and glasses. This factory is planned to have a daily production capacity of 20,000 pairs of eyeglasses by 2021.
In 2015 Lenskart, based in Delhi, delivered eyewear products to more than 600,000 customers 50 cities in India, including 45 tier-two and tier-three cities. The company plans to grow this network by 2021 to include 100 tier-two and tier-three cities, serving five million customers.
Including this round, Lenskart has raised more than INR3.7 billion since its founding. IDG invested INR220 million in 2011, then joined Unilazer in 2013 to commit another INR530 million. Lenskart began in 2010 as a division of Valyoo Technologies, which also had divisions for selling watches, bags and jewelry; the parent company later closed the latter three divisions to focus on eyewear.
IFC's investment is an intersection of its ongoing involvement in India's internet, manufacturing and healthcare sectors, which it has been supporting as part of its development goals for the country. Last year it made a $13.5 million commitment, alongside Axon Partners Group and Intel Capital, in IT infrastructure services provider NxtGen Technology, and led a $10 million round for eye clinic chain Eye-Q Vision.
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