Abu Dhabi Investment Authority (ADIA) is reportedly close to clinching a deal to acquire a stake inLenskart Solutions Pvt Ltd for about $500 million.
According to a Bloomberg report, the West Asian sovereign wealth fund is in the process of firming up an agreement to acquire new equity and existing shares of the eyewear start-up.
The Abu Dhabi move dispels concerns of a funding winter in startups amid uncertainties over the global economy. With funds from private equity and venture capital players drying up, start-ups have been forced to cut costs and even layoff employees.
The Bloomberg report added that if the ADIA deal materialises, it would value Lenskart at more than $4 billion. The deal may be announced as early as this week. It, however, added that though discussions were at an advanced stage, the details could still change.
Lenskart has grown into India’s largest optical brand and is backed by KKR & Co, Soft Bank Group, TemasekHoldings and PremjiInvest.The company uses technology to sell glasses and contact lenses to consumers.
In February, reports had said that private equity firm Chrys Capital could invest $100 million in the eyewear brand.
While Kedaara Capital has around 9 per cent stake in Lenskart, SoftBank and PremjiInvest reportedly hold 19 percent and over 10 per cent, respectively. SoftBank is its single largest investor.
The startup was co-founded in 2010 by Peyush Bansal, who is also its chief executive officer. The company bought a majority stake in Japan’s Owndays Inc at a valuation of about $400 million last year.
