Lenskart FY22 revenue rises 66% to Rs 1,502 cr, but slips into losses

Eyewear retailer Lenskart’s consolidated revenue from operations grew 66 per cent to Rs 1,502 crore in the fiscal year (FY22) compared to Rs 905 crore last year. The SoftBank-backed company reported losses of Rs 102 crore in FY22 after reporting a profit of Rs 28 crore in the previous financial year, according to data accessed by business intelligence platform, Tofler.

Total expenses rose 73 per cent to about Rs 1,726 crore in FY22. The cost of material has almost doubled to Rs 486 crore in FY22 compared to Rs 279 crore last year. Expenses related to employee benefits are Rs 245 crore compared to Rs 176 crore in the previous year. The other expenses are Rs 772 crore in FY22 compared to Rs 437 crore.

Peyush Bansal-led Lenskart recently said that its aim is to build the world’s largest eyewear firm. It aims to ship 300-400 million spectacles a year and serve 50 per cent of users in India. As part of that strategy, the firm is setting up the world's largest eyewear manufacturing plant in Bhiwadi, Rajasthan. It shall have the capacity to ship 50 million pairs of eyewear a year. Bansal is investing about $150 million to build this facility.

The firm recently closed a $200-million funding round, led by Alpha Wave Global (previously Falcon Edge), where its valuation rose by over a third to $4.5 billion, according to sources.

Lenskart is expanding globally and making acquisitions. It t recently bought a majority stake in Japan’s direct-to-consumer eyewear brand Owndays. This acquisition is expanding Lenskart’s presence in 13 Asian markets, including India, Singapore, Thailand, Taiwan, the Philippines, Indonesia, Malaysia, and Japan. The deal, according to sources, is estimated to be worth $400 million. The two firms combined have a revenue run rate of $650 million in the ongoing financial year with $400 million from Lenskart and the rest from Owndays, according to the sources.

Currently, Lenskart is focused on tapping India, Southeast Asia and West Asia, where cases of myopia are prevalent. It also has plans to tap the US market in the next 3-4 years.