Abu Dhabi Fund Considers Acquisition of Stake in Lenskart

Abu Dhabi Investment Authority (ADIA) is said to be finalizing a deal to acquire a stake in Lenskart Solutions Pvt Ltd for roughly $500 million. The West Asian sovereign wealth fund is reportedly in the process of solidifying an agreement to acquire new equity and existing shares of the eyewear start-up. This move comes as a relief for start-ups amid uncertainties over the global economy, as funds from private equity and venture capital players dry up, forcing them to cut costs and even lay off employees.

According to a Bloomberg report, the deal is expected to value Lenskart at more than $4 billion, marking an impressive growth trajectory for the Indian optical brand. Discussions are reportedly at an advanced stage, and an announcement may be made as early as this week. However, the report cautioned that the details could still change.

Lenskart has grown rapidly over the past few years, backed by notable investors such as KKR & Co, Soft Bank Group, Temasek Holdings, and PremjiInvest. The company has been using technology to sell glasses and contact lenses to consumers, and has now become India’s largest optical brand.

In February, reports had suggested that private equity firm Chrys Capital was considering investing $100 million in Lenskart. While Kedaara Capital currently holds around 9% stake in the company, SoftBank and PremjiInvest reportedly hold 19% and over 10%, respectively. SoftBank is currently the largest investor in Lenskart.

The start-up was founded in 2010 by Peyush Bansal, who is also its chief executive officer. Last year, Lenskart acquired a majority stake in Japan’s Owndays Inc at a valuation of about $400 million, indicating the company’s intention to expand beyond India.

The ADIA deal is expected to further boost Lenskart’s growth prospects, especially given the current funding constraints in the start-up ecosystem. Sovereign wealth funds have become increasingly active in investing in start-ups, as they seek to diversify their portfolios and gain exposure to the growth potential of the technology sector.

Overall, the deal is likely to be a significant milestone for Lenskart, and could potentially accelerate its expansion plans both within India and globally. As the eyewear market continues to evolve, the company’s focus on using technology to reach consumers could give it a competitive edge and help it maintain its market leadership position.