Lenskart to acquire AI start-up GeoIQ for smarter retail expansion
What's the story
Leading omnichannel eyewear retailer Lenskart is all set to acquire GeoIQ, a location artificial intelligence (AI) start-up. The deal is nearly complete with Lenskart poised to take a majority stake in the company. Most of GeoIQ's existing investors are likely to exit as part of this transaction. This acquisition comes after Lenskart's previous investment in GeoIQ during a $2.25 million funding round led by the former and joined by 9Unicorns (now 100Unicorns) and Ecosystem Ventures in May 2022.
Business model
Actionable consumer insights for offline demand
Founded by Devashish Fuloria, Tushneet Shrivastava, and Ankita Thakur, GeoIQ uses proprietary algorithms to combine government data with other trusted public sources and satellite imagery. The start-up generates 100m x 100m geospatial grids from this information. It offers businesses with actionable consumer insights to tap into offline demand and facilitate faster expansion. Notably, it already serves well-known brands like Lenskart, Zepto, Navi, HUL, Caratlane, GIVA, Swiggy, Licious, and CultFit.
Market standing
Current valuation and financials
According to start-up data intelligence platform TheKredible, GeoIQ is currently valued at around ₹90 crore (over $10 million). Lenskart is the largest stakeholder in the company with a 17.11% stake while all three co-founders hold a 16.57% stake each. For the fiscal year ending March 2024, GeoIQ reported an operating revenue of ₹6.7 crore against ₹7.1 crore in FY23 but its net loss widened to ₹6.1 crore from ₹4.2 crore year-on-year during this period.
Growth strategy
Multiple acquisitions by Lenskart
This will be Lenskart's second acquisition in two years. In October 2023, it purchased TangoEye, an AI-driven computer vision start-up in which it was already an investor. In June 2022, it bought a majority stake in Japan's Owndays. In the same year, Lenskart's subsidiary Neso Brands acquired a minority stake in Paris-based omnichannel eyewear brand Le Petit Lunetier. The latest development comes as Lenskart prepares for its IPO aiming to raise $1 billion at a valuation of $10 billion.