Valuation & Private Placement
Valuation & Private Placement with Lenskart Investor
- Lenskart Investor
- Strategic Valuation
Background
In early 2025, XYZ Innovations Pvt Ltd, a fast-growing Indian startup in the consumer technology sector, appeared on Shark Tank India. Their compelling pitch, robust financials, and unique business model attracted significant attention, particularly from Mr. Piyush Bansal, CEO of Lenskart. Mr. Bansal agreed to invest, marking a pivotal moment for the company’s funding aspirations. To formalize this investment and attract additional capital, XYZ Innovations chose to raise funds via private placement, fully compliant with the Companies Act, 2013.
- Stage 1: Internal Preparation
- The founders, energized by the Shark Tank success, initiated plans to issue new shares through private placement to selected investors, including Mr. Bansal.
- The company’s Board of Directors convened, setting the fundraising objectives and appointing key external consultants (legal and company secretarial advisors).
- Stage 2: Triggering Valuation
- In compliance with Section 42 and Section 62 of the Companies Act, 2013, determining the fair issue price of shares became mandatory.
- The Board acknowledged the need to appoint a Registered Valuer to establish the company’s fair valuation.
- Stage 3: Appointment of Registered Valuer
- A formal board meeting was held, and a resolution was passed reading:
“RESOLVED THAT pursuant to Section 247 of the Companies Act, 2013, MYVALUATION, IBBI Registered, is hereby appointed for the purpose of undertaking the valuation of equity shares proposed to be issued under private placement.” - Our team, as the Registered Valuer, engaged with management and began the valuation assignment.
- Stage 4: Conducting the Valuation Assignment
- Information Gathering
- Access to the latest financial statements, management accounts, cap table, updated business plan, and periodic investor presentations—including the Shark Tank pitch—was provided.
- The team undertook management interviews and reviewed key post-show developments, such as increased customer traction and pipeline leads.
- Methodology
- After carefully analysing growth, profitability, and market position, Discounted Cash Flow (DCF) methodology were selected, ensuring an accurate market and intrinsic value assessment.
- Scenario analyses considered Mr. Bansal’s investment terms, influence on company credibility, and anticipated new business the Lenskart network could unlock.
- Deliverables
- The valuation report included detailed working papers, clear assumptions, justifications, and a recommended fair value range—compliant with ICAI standards and Companies Act rules.
- The final report was reviewed and approved by the Board.
- Stage 5: Private Placement Execution
- The company, with legal advisors, prepared the PAS-4 Private Placement Offer Letter and circulated it to all selected investors.
- Application moneys were collected via proper banking channels.
- Post verification, a PAS-3 Return of Allotment was filed with the ROC, officially recording the new shares issued to Mr. Bansal and other participating investors.
- Stage 6: Ongoing Management and Reporting
- The process involved frequent check-ins with company leadership, proactive updates to legal counsel, and transparent communication with all stakeholders.
- The Registered Valuer responded promptly to queries from the investor’s due diligence teams.
- Full documentation, signed reports, and compliance records were maintained throughout to ensure seamless ROC scrutiny.
Impact & Strategic Value
This transaction stands out for the combination of regulatory compliance, high-profile investor involvement, and the positive impact of Shark Tank publicity.
New partnerships and customer leads were rapidly unlocked, as the startup leveraged its post-Shark Tank visibility and Lenskart-backed credibility for further business expansion.
Why This Matters
This case study demonstrates how integrating professional valuation services early—and managing a compliant, transparent fundraising journey—empowers startups to leverage marquee investors’ involvement and post-Shark Tank momentum, all while navigating regulatory complexities with confidence. If your company seeks to raise funds under similar circumstances, engaging a Registered Valuer ensures both legal compliance and strategic clarity throughout the investment process.