Lenskart raises Rs400 crore from Ratan Tata, IFC, others

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Mumbai: Lenskart Solutions Pvt. Ltd, the online retailer that sells eyeglasses, sunglasses, contact lenses and eyewear accessories, on Wednesday announced that it has raised a Series D round of investment of Rs.400 crore from World Bank arm IFC, Ratan Tata and Infosys co-founder Kris Gopalakrisnan, the firm said in a press release.

Existing investor TPG Growth and IDG Ventures also participated in the latest round. Adveq Management also invested in the new round.

Last month, Mint had reported that Ratan Tata had made an investment as part of the company’s latest funding round. It had reported that the latest round of fund-raising will value Lenskart Solutions, formerly known as Valyoo Technologies, at about Rs.1,600 crore (about $240 million).

IFC has invested Rs.171 crore as the lead investor in this round. In February, IFC disclosed that it was considering an investment of Rs.170 crore in Lenskart.

Lenskart is into assembly, manufacturing, wholesale distribution and supply of high-quality eyewear products, such as eyeglasses, power sunglasses and contact lenses. The company plans to utilize the funds for strengthening its technology, supply chain, lens manufacturing, and expanding the reach of its high-quality eyewear products across 400 cities, the release said.

“IFC is a long-term partner with global knowledge and a broad network of Internet, technology and healthcare clients, including in the eye care space. We will be able to draw on IFC’s extensive global experience in the healthcare and manufacturing sectors, particularly in supply chain development and capacity building to realize its potential and develop best practices,” said Peyush Bansal, founder and chief executive at Lenskart.

Lenskart has adopted an omni-channel approach making eyewear available on desktop, mobile, hypermarkets, high streets, malls, hospitals and even at home. The company conducts over 1,500 eye exams daily through its home eye exam service, which it intends to make available for every home in urban and rural India.

“The Lenskart investment is a part of IFC’s Venture Capital group’s strategy to invest in innovative Internet, Healthcare and Technology companies across emerging markets,” said Pravan Malhotra, IFC’s co-lead for global internet investments and lead for VC investments in South and Southeast Asia.

IFC’s investment will support a rapidly growing market leader in the Internet sector, while meeting a significant gap in the Indian eye care market, he added. IFC’s committed portfolio in India is over $5 billion, as of 30 June 2015. In FY15, IFC committed $1.4 billion in new investments.

Lenskart, which was incorporated in 2010, had raised almost $36 million (aboutRs.200 crore) in funding from investors, prior to the latest round.

In January 2015, Lenskart had raised $22 million in a series C round led by TPG Growth. Hong Kong-based TR Capital and IDG Ventures also participated in the round. Earlier in 2013, the company raised $10 million from Ronnie Screwvala-led Unilazer Ventures Pvt. Ltd and IDG Ventures. In 2011, the company raised $4 million from IDG.