Indian eyewear retailer Lenskart has announced its acquisition of a majority stake in Japan’s Owndays Inc., marking a significant step toward creating one of Asia’s largest online eyewear retailers. Supported by SoftBank Group, Lenskart has finalized a deal to purchase shares of Owndays from major stakeholders L Catterton Asia and Mitsui & Co. Principal Investments.
Deal Overview
The acquisition is valued at approximately $400 million, according to Bloomberg, and positions Owndays to operate as a premium eyewear brand while Lenskart continues to focus on the middle and mass market segments. Although Lenskart will hold a majority stake, the acquisition is structured as a merger, allowing Owndays to maintain its independent operations under the leadership of co-founders Shuji Tanaka and Take Umiyama.
Expansion of Market Reach
This strategic acquisition expands Lenskart’s footprint to 13 Asian markets, including Singapore, Thailand, Taiwan, the Philippines, Indonesia, Malaysia, and Japan. Founded in 1989, Owndays has been a pioneer in eyewear retail, launching its first overseas stores in 2013. Today, it operates 460 outlets across various countries in addition to Japan.
Market Potential
Lenskart’s co-founder and CEO, Peyush Bansal, emphasized the vast untapped potential in the eyewear market, stating, “About 4.5 billion people worldwide need prescription glasses, but only half of them have access. This represents a $50 billion to $100 billion opportunity and a chance to build an Amazon for eyewear.” This statement underscores Lenskart’s vision of democratizing access to eyewear products.
Financial Projections
With this acquisition, Lenskart and Owndays project combined sales of $650 million for the fiscal year ending March 2023. Lenskart alone is expected to reach profitability at $400 million in sales within the same period. Founded in 2010, Lenskart has rapidly grown into India’s leading e-commerce portal for eyewear, achieving a remarkable 65% growth rate last year and projecting even higher numbers this year.
Strategic Vision
This partnership solidifies Lenskart’s position as a leader in the global eyewear market by combining innovative retail strategies with a strong regional presence. The merger allows Lenskart to leverage Owndays’ established brand reputation and operational expertise while expanding its product offerings into the premium segment.
Lenskart has also been focusing on enhancing its technological capabilities, investing in digital transformation initiatives aimed at improving customer experiences across both brands. The acquisition aligns with Lenskart’s broader strategy of integrating advanced technology into its operations, which includes plans for supply chain automation and enhanced online services.
Future Outlook
As Lenskart continues its expansion across Asia, this acquisition not only strengthens its market position but also opens up new avenues for growth in an increasingly competitive landscape. By merging with Owndays, Lenskart aims to redefine the eyewear shopping experience for consumers across diverse markets while addressing the significant unmet demand for quality eyewear solutions.
In conclusion, this strategic move positions Lenskart as a formidable player in the Asian eyewear market, poised to capitalize on emerging opportunities while delivering value to customers through enhanced product offerings and services.
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December 30, 2024 at 4:57 pm
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