Lenskart is an e-commerce company in India that specializes in eyewear accessories. Founded in 2010, it is one of the most successful D2C brands in India. We have discussed its diverse sources of revenue in its business model which we discussed here. As per the latest reports, its valuation is $4.5 billion. Here, we will delve into Lenskart shareholders and the funding valuation of 2023.
As of May 2023, Lenskart has undergone 10 funding rounds. In March 2023, Lenskart held its latest funding round worth $500 million. The largest shareholders of Lenskart include ADIA, SoftBank Vision, Kedaara Capital, TR Capita, Alpha Wave Global, Premji Invest, etc. Let’s look at the recent shareholding structure of Lenskart-
|Shareholder’s Name||Percentage of Shares Owned|
|International Finance Corporation||5.4%|
|ADIA (Abu Dhabi Investment Authority)||10%|
The majority of the stakes are owned by SoftBank i.e. 20.1% followed by Premji Invest (11.1%) and ADIA (10%). But how much funds did they provide? You will get the info in the next section.
Fundings so far & Valuation
Lenskart signed a definitive agreement with ADIA for a 10% stake in the company. ADIA invested a massive amount in Lenskart through SWF i.e. Gulf Sovereign Wealth Fund. Did you know in the last 12 months, the company made a capital raise worth $750 million? Thus, Lenskart received one of the largest financings at its growth stage at a global level.
Let’s look at the latest funding rounds of Lenskart-
|Venture Capitalist||Funding Amount|
|ADIA (Abu Dhabi Investment Authority)||Rs.4,100 crore|
|DSP Mutual Fund||Rs.320 crore|
|Ravi Modi Family Trust||Rs.100 crore|
|Avendus Capital, Temasek Holdings||Rs.220 crore|
|Alpha Wave Incubation, Epiq Capital||Rs.760 crore|
|Alpha Wave Global, Temasek Holdings||Rs.1,650 crore|
|SoftBank Vision Fund||Rs.2,255 crore|
|Kohlberg Kravis Roberts||Rs.779 crore|
|Kedaara Capital||Rs.451 crore|
Thus, currently, the market valuation of Lenskart is Rs.36,742 crore ($4.5 billion).
Is Lenskart profitable?
The query on profitability is obvious for a company with such a humongous valuation. Don’t you wonder whether it is profitable or not despite being valued at $4.5 billion?
You will get to know it by looking at the data in the following tables-
|Lenskart’s Financials||Amount (in crores)|
|Market Valuation||$4.5 billion (Rs.36,742 crores)|
|Revenue Earned||Rs.1,503 crore|
|Profit/Loss||Loss of Rs.102 crore|
So, here is your answer- “Lenskart was not profitable in FY22 because it dipped in the loss of Rs.102 crore.” Even though it earned an appreciable amount of revenue from its numerous revenue sources. But the cash outflow in various expenses was high as well. Means, the amount spent exceeded the amount of revenue earned. Eventually, it faced a considerable amount of loss.
Lenskart earned revenue from the following sources-
|Revenue Sources||Amount Earned|
|Sale of Products||Rs.1,418 crore|
|Subscription Fees||Rs.49 crore|
|Other Operating Revenue||Rs.36 crore|
Now look at the following expenses that led to the losses for the company “Lenskart.”
|Cost of Materials||Rs.635 crore|
|Marketing & Promotion Expenses||Rs.235 crore|
|Commission paid to other selling agents||Rs.305 crore|
|Employee benefits expense||Rs.245 crore|
|IT and Communications expense||Rs.39 crore|
|Telephone Postage||Rs.42 crore|
|Other expenses||Rs.225 crore|
With a significant amount of funding, Lenskart is planning to expand its operations. And scale up its presence in the international market. Especially in Asia and the Middle East. Currently, Lenskart has more than 2000 stores worldwide. Out of which 1,500 are in India and the remaining in Southeast Asia and the Middle East. Also, it claims to become profitable in the current fiscal year.