Lenskart gears up for IPO, aims to raise up to $1 bn from investors

Eyewear startup Lenskart has approached bankers to pitch for its upcoming initial public offering (IPO), seeking to raise about $1 billion, according to industry sources. The company aims for a valuation of about $7 billion and plans to go public by early next year.

 

“The pitch will happen next month. Lenskart is a profitable business,” said a person familiar with the development.

 

A fund managed by United States-based financial services major Fidelity last year increased the valuation of Lenskart to $5.6 billion. This represented a 12 per cent increase in the firm’s fair value in Fidelity’s books, based on the valuation of the company as of September 30.

 

Lenskart’s revenue from operations rose by 43 per cent to ~5,427.7 crore in FY24 from ~ 3,788 crore in FY23, according to Entrackr. The firm generates revenue by selling eyewear frames, lenses, goggles, and offering additional services such as eye checkups. Due to cost effective management, Lenskart controlled its losses by 84 per cent to ~10 crore in FY24 from ~63 crore in FY23, according to Entrackr.

 

In June last year, Lenskart raised $200 million in secondary investment from Singapore’s state-owned investment firm Temasek and Fidelity.

 

As value in startup companies grows, secondary sales offer a way to repay early investors.

 

The Peyush Bansal-led company was valued at about $5 billion in this round. The firm was last valued at $4.5 billion during a $100 million funding round in June 2023. Over the past two years, Lenskart has attracted nearly $1 billion in capital, making it one of the largest growth-stage financings globally.

 

Lenskart continues to deepen its penetration in India while rapidly scaling its international presence in Asia. With a unique click-and-mortar business model, it is disrupting the eyewear industry by offering an omni-channel customer experience across online platforms, mobile applications, and stores. The company now has over 2,500 stores, of which 2,000 are in India.

 

Globally and in India, Delhi-based Lenskart competes with players such as Titan Eyeplus, Specsmakers, Vision Express, Warby Parker, and Italian eyewear conglomerate Luxottica Group.

 

The company has also been making acquisitions to scale up its operations and gain access to new technologies. These include companies such as Tango Eye, an artificial intelligence-based computer vision startup. In 2022, Japanese brand Owndays became a part of the Lenskart group in a deal estimated at $400 million.

 

Recently, it was reported that Lenskart’s valuation could rise by 20 per cent to $6 billion if discussions for a $200–300 million secondary share sale go through.

 

In April 2024, Bansal posted on LinkedIn that the company was searching for 25 acres of land to establish a “mega factory”. This was to be located within 60 km of Bengaluru’s Kempegowda International Airport.

 

Lenskart plans to set up its largest eyewear manufacturing facility in Telangana with an investment of about ~1,500 crore. The Gurugram-based eyewear firm has signed a memorandum of understanding (MoU) with the Telangana government to establish the facility at Fab City.