What does Meta’s surprise move into Ray-Ban tell us about the future of growth companies? Strategic minority stakes are no longer just the playbook of tech giants – they are becoming a smart way for smaller firms to leapfrog barriers, gain influence, and accelerate scale. The opportunities are big, the risks are real, and the structuring makes all the difference.
Recent news that Meta has taken a strategic stake in EssilorLuxottica, owner of eyewear brands such as Ray-Ban, Chanel, Ralph Lauren, Persol and Oakley, attracted worldwide attention. At first glance, it seems unusual: a technology platform that began with social media, moving into artificial intelligence and wearables, now decides that glasses could be the next frontier. To secure its position, it acquires a shareholding in the market leader.
This type of transaction – where a company invests in a larger, established player to accelerate its strategic goals – is more common among tech giants. Yet, increasingly, scale-ups and growth companies are exploring similar paths. These businesses may not have the balance sheet to buy a multinational outright, but a well-structured minority stake can open doors to resources, distribution, technology, or regulatory access that would otherwise remain out of reach.
This type of transaction – where a company invests in a larger, established player to accelerate its strategic goals – is more common among tech giants. Yet, increasingly, scale-ups and growth companies are exploring similar paths. These businesses may not have the balance sheet to buy a multinational outright, but a well-structured minority stake can open doors to resources, distribution, technology, or regulatory access that would otherwise remain out of reach.
Why Would a Growth Company Invest in a Larger Firm?
The motivations for a growth company to acquire a stake in a larger firm are varied but often strategic. For some, the driver is access: fintechs in India and the United States have recently taken minority stakes in traditional banks, not because they sought to become bankers, but because ownership provided a reliable route into regulated infrastructure that is essential for their services. For others, the goal is technological leverage. Rimac Automobili, a Croatian electric vehicle start-up, secured a controlling interest in Bugatti, one of the most prestigious names in the car industry. By combining Rimac’s pioneering EV technology with Bugatti’s heritage and distribution reach, Rimac was able to accelerate its move from niche innovator to global player. There are also cases where a stake is a way to end destructive competition. Uber, when still in its pre-IPO growth phase, swapped its operations in China, Southeast Asia and Russia for minority holdings in the dominant local ride-hailing companies. Rather than continue to burn capital in regional battles, Uber turned sunk costs into valuable equity. Brand alignment can also be a motive, as shown by Farfetch’s investment in Neiman Marcus. The partnership was designed to marry Farfetch’s e-commerce expertise with the credibility and reach of an established luxury retailer, underlining how growth companies can seek legitimacy and scale through association with incumbents.
Opportunities and Risks
These transactions can be transformative, but they are rarely straightforward. A minority stake may create influence well beyond the size of the investment, yet the precise value depends on what rights are attached. Without board representation, co-development agreements, or preferential access to supply or distribution, a shareholding risks being little more than a financial bet. Scale also matters: a very small stake may lack the weight to shape decisions, while a larger one can raise questions about control or regulatory scrutiny. Cultural and operational fit is another critical factor. Growth companies often move quickly and take risks, whereas established corporates may be cautious and process-driven. Aligning these different approaches requires deliberate effort. Ultimately, the success of such partnerships depends on careful structuring, clear expectations, and the ability to translate financial investment into a genuine strategic advantage.
A Space for Creative Structuring
This phenomenon is highly relevant to the market we serve. Growth companies are constantly seeking ways to accelerate their trajectory. Buying into a larger partner – whether in the same industry or cross-sector – may at times be a faster and more effective path than building everything organically. This approach is very much in line with our Business Beyond Borders philosophy, where we help companies bridge boundaries and create opportunities that transcend traditional limitations.
At Kylla, we see our role as enabling these strategic transactions. From identifying suitable partners, to structuring a stake that balances influence with flexibility, to aligning investors around the rationale, we help growth companies turn bold ideas into executable deals.
Meta’s investment in EssilorLuxottica may seem far removed from the world of smaller growth companies. Yet the underlying logic – securing a strategic advantage by taking a stake in a market leader – is becoming increasingly relevant across industries and geographies. For ambitious growth companies, these kinds of moves represent not just financial investment, but a shortcut to scale, credibility, and market access.
The key is to structure them well. And that is where experienced transaction advisors can make the difference.
By Sigurd Qvam Borge
Junior Investment Manager
Kylla Corporate Transaction
