Owndays Acquisition: Key Details, Impact, and What Comes Next

Lenskart's acquisition of Owndays marks a significant milestone in the eyewear industry. This $400 million deal positions Lenskart as a dominant player in Asia, expanding its reach to 13 markets. The merger combines the strengths of both companies, promising enhanced customer experiences and a broader range of eyewear options across the region.

What Is Owndays?

Founded in 1989, Owndays specializes in eyewear, offering a wide range of glasses, sunglasses, and lenses. The company stands out with its unique collaborations with brands like ZEON and FREAK'S STORE, frequent promotions, and comprehensive services such as lens replacement and online lens exchange. Additionally, Owndays is committed to social responsibility through initiatives like EYE CAMP, which provides glasses to those in need, and support for guide dog training and awareness.

Who Acquired Owndays?

Lenskart is a leading e-commerce platform in the eyewear industry, known for its innovative omni-channel approach that integrates online and offline shopping experiences. The company offers a diverse range of products, including eyeglasses, sunglasses, and contact lenses, catering to men, women, and children. Additionally, Lenskart provides services like home eye tests and a store locator to enhance customer convenience. With over 1100 stores across major cities, Lenskart holds a strong market position in India.

When Was Owndays Acquired?

Lenskart acquired Owndays on June 30, 2022. This acquisition aligns with Lenskart's strategic expansion in the Asian eyewear market, coinciding with a period of significant financial activity, including a new funding round valuing Lenskart at over $4.5 billion. The timing also reflects industry trends towards consolidation and omni-channel retailing, aiming to create one of Asia's largest eyewear retailers.

Why Was Owndays Acquired?

• Market Expansion: The acquisition of Owndays significantly extends Lenskart's market presence, reaching 13 Asian markets, including India, Singapore, Thailand, Taiwan, Philippines, Indonesia, Malaysia, and Japan. This strategic move positions Lenskart as the largest omnichannel eyewear brand in Asia, allowing it to capture a substantial share of the $15 to $20 billion eyewear market in these regions.
• Technology Integration: Lenskart plans to scale its engineering team to 500 people to enhance the online and omnichannel experience for both brands. Additionally, Lenskart's investment in supply chain integration and automation will be extended to Owndays, leveraging advanced manufacturing technologies to produce 50 million pairs of prescription glasses annually in the world's largest automated eyewear factory.
• Competitive Advantage: The merger creates one of Asia's largest online eyewear retailers, giving the combined entity a significant competitive edge. By targeting different market segments—Lenskart focusing on the budget segment and Owndays on the premium segment—the acquisition allows for a broader customer base. The combined annual revenue run rate of $650 million for FY23 further strengthens their market position, making eyewear more accessible and affordable.

Acquisition Terms

• Acquisition Price: $400 million
• Payment Method: The exact financial details of the deal were not disclosed.
• Key Conditions or Agreements:
  • Lenskart is acquiring shares from L Catterton, Mitsui, and Principal Investments.
  • Owndays' co-founders, Shuji Tanaka and Take Umiyama, will remain shareholders and continue to lead the management team.
  • Owndays will operate independently of Lenskart, targeting the premium segment, while Lenskart focuses on the budget segment.
  • The acquisition will make Lenskart the largest omnichannel eyewear brand in Asia, covering 13 markets.

Impact on Owndays

The acquisition of Owndays by Lenskart has led to significant changes in operations and management. Owndays will continue to operate independently, with its co-founders Shuji Tanaka and Take Umiyama remaining as shareholders and leading the management team. Lenskart plans to scale its engineering team and invest in supply chain integration and automation, which will be extended to Owndays. This strategic move aims to enhance the online and omnichannel experience for both brands, leveraging advanced manufacturing technologies to produce millions of prescription glasses annually.

In terms of product offerings and services, the acquisition will allow Owndays to maintain its focus on the premium segment while Lenskart targets the budget segment. This dual approach is expected to broaden the customer base and enhance market reach across 13 Asian markets. While specific employee and customer reactions are not detailed, the overall sentiment appears positive, with expectations of improved customer experiences and expanded product availability. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.