Lema21 and EÓtica merger likely to boost Brazil’s $26 billion eyewear industry

In an effort to take a piece of Brazil's $26 billion eyewear industry from traditional retailers, two of the largest venture-backed players have merged their business, according to a report.

The TechCrunch report says, Lema21, a private label startup and eOtica, an ecommerce website for prescription eyewear and contacts, agreed to a merger.

Lema 21 co-founders Naomi Arruda and Jonathan Assayag started the company with their own capital. It started selling private label consumer frames since 2013. It gained the attention of the market after receiving a $1.6 million seed round to build the 'Warby Parker' of Brazil.

People love the brand for the following reasons: unique purchase experience, virtual try-on tool and home trial offered. Home trial is special because that company ships four different frames for potential customers to try at their homes. The company runs a "buy one give one policy" where it donates the cost of a simple pair of prescription glasses to local NGOs for every sale it gets.

The company has also raised $4.2 million to date from angel investors, advisors and venture capitalists.

eOtica on the other hand is in the business of selling branded prescription glasses, sunglasses and contacts like Ray-ban, Oakley, and Carreira, on a standard ecommerce website.

The ecommerce website eOtica was founded by Eduardo Baek and Bruno Ballardie. They were the first to sell prescription glass online in Brazil. eOtica has received funding from Latin American Kaszek Ventures and eBricks.

The company is also growing at clip of 103% per year, according to Tropicalpost.

The merger of Lema21 and eOtica suggests the two companies want to expand their already growing business. It also shows investors' positive outlook in start-ups.