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Follow on Google News | PremjiInvest is eyeing a stake in Lenskart nowBy: HU Consultancy The investment by PremjiInvest is part of the new round of funding by the Delhi-based startup in a transaction pegged at Rs 200 crore, or $30 million, which also involves sale of shares by early investors in the company, these people told ET on condition of anonymity, as they are not authorised to speak to the media. The transaction is set to value Lenskart at about Rs 2,000 crore and comes three months after it mopped up Rs 400 crore, at a valuation of Rs 1,600-1,700 crore, in a round led by International Finance Corp, the private sector investment arm of the World Bank. Venture capital firm IDG Ventures India is making a partial exit with this deal, with "multi-bagger returns", one of the people cited above said. "The round is largely secondary in composition, with a third of it coming as a primary infusion into the company," this person said. Avendus Capital is said to be advising Lenskart on the transaction. IDG Ventures India was the first institutional investor in Lenskart in 2011 when it led a $4-million round. Since then it has invested across all its four rounds from its different funds. It could not be immediately ascertained if any of Lenskart's existing investors, which includes private equity major TPG Growth and Zurich-based asset management company Adveq, are also participating in the latest round. Interestingly, in a climate where entrepreneurs are courting investors, Lenskart transaction is being driven by inbound interest. "People want to put more money in the company, and they (PremjiInvest) Emails and text messages sent to Lenskart CEO Peyush Bansal did not elicit a response till press time. "As a policy, we don't comment on our investments," Lenskart has 200 stores, where customers can book orders with an option of delivery at home or pick up at the store. The company charges a franchise fee and pays a commission to store owner on each sale, while it manages the inventory and customer experience on its own. It plans to expand to 400 stores by the end of the year. "If you look at Lenskart's business model, they have expanded their offerings from selling optical devices, to selling their own branded products under a private label arrangement. Optical is a complicated market, and it was waiting to be disrupted. Lenskart's margins are very good because they have the added advantage of manufacturing their own products," said Harminder Sahni, managing director at consulting firm Wazir Advisors. "It's not just an online or a retail play, but a brand and product play," he added. In an earlier interview, Lenskart's Bansal had said that the "idea is to create an eyewear brand" and it plans to open "a store in 372 towns in India who have a population of over 50,000". https://mnacritique.mergersindia.com/ End
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