TOKYO- Lenskart, India’s largest eyewear retailer backed by SoftBank Group, is buying an approximately 75% stake in Owndays, a Japanese eyewear chain.
The strategic partnership through this merger will help build Asia’s largest omni-channel eyewear retailer, Lenskart said on Thursday.
As a part of the deal, the majority shareholders of Owndays – L Catterton Asia and Mitsui & Co, Principal Investments – will sell their stake to Lenskart.
The deal is estimated to value Owndays at around $400 million, according to a person briefed on the matter.
The acquisition will expand Lenskart’s presence to 13 markets in Asia, including India, Singapore, Thailand, Taiwan, Philippines, Indonesia, Malaysia, and Japan.
The cofounders of Owndays – CEO Shuji Tanaka and COO Take Umiyam – will continue as shareholders and lead the management team of Owndays post the deal. It will continue to operate as a separate brand, Lenskart noted.
Peyush Bansal, cofounder and CEO of Lenskart, said the two firms combined have a revenue run rate of $650 million in the ongoing financial year with $400 million from Lenskart and the rest from Owndays.
“With Owndays, we move a step closer to democratising eyewear,” he said. “I have known Shuji-san [Tanaka] and Take-san [Umiyam] for over five years. I have been an admirer of the disruptive brand and customer experience they have built.”
According to the company, its 300-strong engineering team will be scaled to 500 people in the current financial year and that will help it strengthen online and omnichannel experience for both Owndays and Lenskart.
Lenskart has been investing in its supply chain integration and automation, which will now be extended to Owndays. Lenskart will continue its expansion in India and Southeast Asia as a mass-to-mid-premium brand while Owndays will be scaled as a premium brand.
Lenskart has over 1,100 stores across India, Singapore, and Dubai while Owndays has 460 stores across Asia, including in India.
(www.economictimes.indiatimes.com and www.asia.nikkei.com)
Tuesday, July 5, 2022 – 01:00