PremiumSoftBank-backed Lenskart agreed to buy Tokyo-based Owndays’ shares from L Catterton Asia and Mitsui and Co. Principal Investments. The deal values the Japanese company at about $400 million, Bloomberg reported
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NEW DELHI : Lenskart, India’s largest eyewear retailer, has acquired a controlling stake in Japanese direct-to-consumer brand Owndays, creating one of the largest retailers of eyeglasses in Asia.
SoftBank-backed Lenskart agreed to buy Tokyo-based Owndays’ shares from L Catterton Asia and Mitsui and Co. Principal Investments, the Indian company said in a statement. The deal values the Japanese company at about $400 million, Bloomberg reported. A spokesperson for Lenskart declined to provide details of the deal.
On completion of the purchase, Owndays will continue as a separate brand, targeting the premium segment, while Lenskart will focus on the middle and mass-market segments, the companies said.
The acquisition will help Lenskart expand its presence in 13 East Asian and Southeast Asian markets, including Singapore, Thailand, Taiwan, the Philippines, Indonesia, Malaysia and Japan.
Lenskart, which claims to have sold about 8 million pairs of eyewear in the year ended 31 March 2021, also plans to expand into the Middle East.
Founded in 2008 by Peyush Bansal, Amit Chaudhary, Neha Bansal and Sumeet Kapahi, Lenskart is also engaged in the assembly, distribution and supply of eyewear.
“The way people buy eyewear is changing rapidly. In today’s age, the customer wants great products, great prices and delightful experiences all the time," said Bansal, co-founder and group chief executive officer at Lenskart.
Owndays co-founders, Shuji Tanaka and Take Umiyama, will continue to be shareholders and lead the management team.
“I believe digital transformation is the key to our next phase of growth in the post-pandemic operating environment, and I am excited to partner with Lenskart, which has deep expertise and intellectual capital in the information technology field," said Tanaka, co-founder of the Japanese firm.
In April, Lenskart secured $100 million in investments from new investor Alpha Wave Ventures.
In May last year, Lenskart raised $95 million in funding led by private equity firm KKR and Co. It turned unicorn, or a startup valued at more than a billion dollars, in December 2019 after raising $275 million from SoftBank Vision Fund.
Recently, Lenskart announced the expansion of its online presence by offering its products on Nykaa, Myntra, Tata Cliq and other e-commerce platforms.
Apart from online sales, the company also has more than 1,000 franchise stores, and by the fiscal year 2023, it is looking to open 400 outlets across the country.
In June 2021, Lenskart set up a vision fund with a corpus of $20 million ( ₹148 crore) for eyecare startups as it looks to tap into a niche segment in India’s growing healthcare industry.
The company plans to invest up to $2 million in each of the selected startups through its vision fund.