Warby Parker, a US-based eyewear manufacturer backed by payment services provider American Express, raised $75m yesterday in a series E round led by asset management firm T. Rowe Price, Recode has reported.
Invesmtent manager Baillie Gifford also took part in the round, according to the New York Times. The round valued Warby Parker at $1.75bn, a person familiar with the matter told Recode.
Founded in 2010, Warby Parker operates an online store and a total of 65 brick-and-mortar shops where it sells own-brand prescription eyewear and sunglasses. For each pair of glasses sold, Warby Parker donates one pair to someone in need through non-profit organisation VisionSpring.
The money will fund the addition of new features to Warby Parker’s platform, such as the ability for eligible customers to receive a new prescription without visiting an ophthalmologist in person. It also hopes to expand its physical presence to 100 stores by the end of 2018.
Warby Parker has now raised approximately $290m in funding. It secured $100m in a 2015 series D round led by T. Rowe Price, with participation from Wellington Management, Tiger Global Management and General Catalyst Partners.
American Express Ventures, the corporate venturing arm of American Express, had contributed to the company’s $41.5m series C round in 2013 alongside General Catalyst, Tiger Global, Spark Capital, Thrive Capital, Menlo Ventures and private investor Millard Drexler.
Warby Parker’s earlier investors include Lerer Hippeau, First Round Capital, Bullish and SV Angel, as well as Tiger Global, Thrive Capital and Menlo Ventures.
Regarding a possible flotation, Dave Gilboa, co-chief executive of Warby Parker, told Recode: “Given the rationale for raising this capital is to invest in future products and services, sometimes those investments are easier to make as a private company.
“And hopefully by the time that we do go public, we have proven kind of the value to the business of some of them.”