ADIA invests $500 million in Lenskart for 10% stake

Lenskart, an e-Commerce portal for eyewear in India, signs a definitive agreement to raise $500 million from Abu Dhabi Investment Authority (ADIA) for a 10 percent stake at a valuation of $4.2 billion. ADIA’s investment will be a mix of primary and secondary deals and will result in ADIA becoming one of the largest shareholders in Lenskart.

Upon completion of the transaction, Lenskart will have attracted close to USD 750 million capital over the last 12 months including recent fund-raising activities, making it one of the largest such growth-stage financings globally.

Speaking on the transaction, Peyush Bansal, Founder & CEO of Lenskart said, “It is still Day 1 at Lenskart. Vision Correction remains a big problem, and Myopia rates continue to grow rapidly, touching levels as high as 80-90 percent in some parts of Asia. Hence, we are still very early in our journey and have a lot of work to do to continue to make our desired impact in this area of critical need. And ADIA, with its patient and long-term approach to investing, is a perfect partner for us as we embark on the next phase of our journey."

Hamad Shahwan Al Dhaheri, Executive Director, Private Equities Department, ADIA said, “Lenskart has rapidly established itself as one of the largest and most innovative eyewear companies globally. Given its unique technology-enabled and vertically integrated business model, we believe the company remains well-positioned to build on its leadership position. This investment is a continuation of our strategy of investing in highly differentiated, market-leading businesses in Asia linked to the region's consumption-driven growth and rapid technological advancement.”

The funding for Lenskart comes at a time when deal flow activity has slowed significantly in the Indian startup market, especially for late-stage startups. As per a report by Bain and Company, the number of $100 million or higher rounds fell 50 percent in India last year to just 48 — and the vast majority of them were closed in the first half of 2022 said in a report Wednesday.

Avendus Capital was the exclusive financial advisor to Lenskart and its shareholders on the transaction. EY acted as ADIA's advisors on accounting and tax matters, while AZB & Partners and Allen & Overy acted as legal advisors to ADIA.