Specsmakers Opticians, the eye-care products retail chain which runs an eponymous online store, has raised additional capital of $3 million (Rs 23 crore) from existing investor Eight Roads Ventures.
The funding was part of an internal round, the company said in a statement.
With the latest infusion, the Chennai based company has raised $7 million from venture capital firm Eight Roads. Last year, the company had raised $4 million (Rs 28 crore) from the investor.
The funds will be used to create an omnichannel presence. The company also plans to focus on the online-to-offline model while adding stores in new geographies, it said.
Founded in 2007 by Pratik Shah, Specsmakers has more than 260 stores across over 30 cities in southern India. It had raised around $1.1 million from pharmaceuticals and healthcare-focused private equity firm Fulcrum Ventures in December 2014. In December 2017, it raised Series A of $10 million led by Eight Roads.
The company said that it has seen online orders increase by 300% post the Covid-19 lockdown.
“The company has been well capitalised through Covid disruptions. We have grown at a cumulative annual growth rate (CAGR) of 50% over the past few years, with growth in FY20 being 55%. Operating metrics such as store-level profitability and revenue per store continue to remain robust despite store footprint growing from 100 stores in 2 cities, to 260 stores across 30 cities,” Pratik Shah, CEO & Founder of Specsmakers said.
Specsmakers launched its online store in March this year in response to the Covid-19 crisis. It also introduced a 3D virtual try-on experience and added products such protective eyewear for extended usage of digital screens.
“The prescription eyewear category is less discretionary, and hence a beneficiary of pent-up demand after the lockdown,” Ashish Venkataramani, Principal at Eight Roads Ventures said.
Optical products retail chains have attracted investor interest in the past as well. The most funded eyewear retailer is Lenskart Solutions, which recently expanded its employee stock option plan (ESOP) pool and onboarded SoftBank’s India head.
Homegrown private equity firm Kedaara Capital, alternative asset management firm Steadview Capital and tech investment firm Epiq Capital are some of its notable investors.