Lenskart, the Peyush Bansal-led eyewear giant, is laying the groundwork for its Initial Public Offering (IPO), targeting an impressive fundraising goal between $750 million and $1 billion. As the company approaches the IPO, it seeks a valuation ranging from $7 billion to $8 billion, signaling its ambition to become one of the largest listings in India’s burgeoning startup ecosystem.
The company, which has grown exponentially since its inception in 2010 by Peyush Bansal and others, is working closely with bankers to facilitate the IPO, eyeing a potential market debut by the end of FY26, provided favorable market conditions persist. The move to go public marks a significant milestone in Lenskart’s journey, positioning it to take advantage of the increasing interest in tech-driven startups in India.
Lenskart’s ascent has been driven by nearly $1 billion in funding raised over the past 18 months, propelling its growth and expansion. In June 2024, a secondary investment of $200 million from Fidelity Management & Research and Temasek raised Lenskart’s valuation to $5 billion. The ongoing interest from institutional investors, including KKR, the Abu Dhabi Investment Authority, and Kedaara Capital, underscores the confidence the market has in Lenskart’s business model and future growth prospects.
The company plans to pursue a secondary share sale of between $200-300 million, which could potentially raise its valuation by an additional 20%. This move could further solidify its position as a frontrunner in the race to go public, signaling confidence in its long-term potential. The influx of funds from secondary investments and a potential IPO will allow Lenskart to continue its expansion, further fueling its growth trajectory in the highly competitive eyewear sector.
Strong Financial Growth Amid Losses
Lenskart’s robust revenue growth highlights its success, despite facing challenges in a fluctuating economic environment. For fiscal year 2024, the company reported a 43% year-on-year increase in revenue from operations, which surged to Rs 5,427 crore. This growth was driven by Lenskart’s expanding customer base and its growing retail footprint, which now spans over 2,500 stores globally, with around 2,000 of those in India. The company has been strategically focusing on expanding its reach, both in terms of physical presence and through acquisitions in the digital space, such as acquiring AI-based computer vision startup Tango Eye and acquiring a stake in Paris-based eyewear brand Le Petit Lunetier.
However, despite the impressive revenue growth, Lenskart posted a modest loss of Rs 10 crore in FY24, a significant improvement from the previous year when the company faced a loss of over Rs 60 crore. The losses reflect the company’s continued efforts to scale and invest heavily in expanding its operations, both in India and internationally. Lenskart’s focus remains on capturing market share and scaling its business model, even if it means sacrificing short-term profitability in favor of long-term growth.
Strategic Global Expansion and Investments
Lenskart’s expansion strategy has been aggressive, particularly in Asia, where the company has made significant acquisitions. The acquisition of Tango Eye, a computer vision startup specializing in AI, underscores Lenskart’s commitment to enhancing its digital capabilities, offering an AI-driven eyewear shopping experience, and enabling more precise vision correction services. Furthermore, Lenskart’s investment in Le Petit Lunetier aligns with its vision of strengthening its presence in Europe and establishing itself as a global player in the eyewear industry.
These acquisitions and investments reflect Lenskart’s ambition to not only lead the Indian eyewear market but also create a competitive edge in international markets. The company’s strategy is clear: build a vertically integrated business model that combines physical retail expansion with cutting-edge technological innovation to provide customers with an enhanced experience.
The Road Ahead for Lenskart
With a strong institutional backing, consistent revenue growth, and a growing footprint in key markets, Lenskart is well-positioned for its IPO and the potential to become one of India’s leading publicly listed startups. While profitability remains a challenge, Lenskart’s long-term focus on innovation, customer-centric strategies, and global expansion ensures that the company is on track for sustained growth and success in the years ahead.
The anticipated IPO, alongside its growing international presence and technological investments, places Lenskart on the path to become a major player in the global eyewear industry. As the company prepares to make its mark on the public markets, all eyes will be on its next steps as it seeks to solidify its position in the industry and continue to drive innovation in the eyewear sector.
