Lenskart files for IPO to raise ₹2,150 crore, eyes valuation of $10 billion

SoftBank-backed Lenskart plans to raise Rs 2,150 crore through IPO to expand CoCo stores, tech infrastructure, and branding amid rising Asian demand for prescription eyewear

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Lenskart Solutions on Tuesday filed draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi) to raise ₹2,150 crore through initial public offering (IPO), as the eyewear retailer looks to tap the growing demand for affordable prescription glasses and contact lenses.

 

The offering consists of ₹2,150 crore in new shares and the sale of up to 132.3 million existing shares by current investors and company founders, according to a draft prospectus filed with the market regulator.

 

Among the selling shareholders are co-founders Peyush Bansal, Neha Bansal, Amit Chaudhary and Sumeet Kapahi and investors including SoftBank’s SVF II Lightbulb (Cayman) Limited, Schroders Capital Private Equity Asia Mauritius Limited, PI Opportunities Fund-II, Macritchie Investments Pte. Ltd., Kedaara Capital Fund II LLP, and Alpha Wave Ventures LP.

 

The company may also conduct a private placement of up to ₹430 crore before the final prospectus filing, which would reduce the size of the new share issuance. According to sources, the firm is aiming for an IPO valuation of about $10 billion.

 

“The offer for sale will be finalised at a later stage,” said a person familiar with the matter.

 

“Peyush Bansal is expected to earn up to ₹700 crore, while other major investors likely to see significant returns include Kedaara, Chiratae Ventures, and Ronnie Screwvala’s Unilazer Ventures and KKR,” the source said.

 

According to the draft papers, the company plans to use ₹272.6 crore from net fresh issue proceeds to open new CoCo (company owned, company operated) stores in India and ₹591.4 crore for lease, rent, and license payments. 

 

It will allocate ₹213.4 crore to technology and cloud infrastructure and ₹320 crore to brand marketing and promotion. Remaining funds will support inorganic acquisitions and general corporate purposes.

 

Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Pvt Ltd, Avendus Capital Pvt Ltd, Citigroup Global Markets India Pvt Ltd, Axis Capital Ltd, Intensive Fiscal Services Pvt Ltd are the book running lead managers to the issue.

 

Founded in 2008, Lenskart launched online operations in India in 2010 and opened its first retail store in New Delhi in 2013. The company aims to improve access to affordable, quality eyewear through a tech-enabled supply and distribution network.

 

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

 

Lenskart is now operating India’s largest eyewear retail network with a presence in metro and smaller cities, as well as in Southeast Asia and the Middle East. It runs manufacturing facilities in Bhiwadi and Gurugram, supported by regional hubs in Singapore and the UAE.

 

It targets a range of customers with premium and affordable brand options. Nearly 45 per cent of its India revenue came from customers who engaged digitally within 90 days before purchase.

 

India remains Lenskart’s largest market in Asia. In the financial year 2025 (FY25), the firm recorded over 100 million app downloads and 105 million website visitors globally. It operates 2,723 stores, including 2,067 in India and 656 overseas.

 

In FY25, Lenskart reported a revenue from operations at ₹6,652.5 crore, up 22.5 per cent from ₹5,427.7 crore in the previous financial year. The company reported a net profit of ₹297.34 crore against a net loss of ₹10.15 crore in FY24. The company’s earnings before interest, tax, depreciation and amortisation (Ebitda), excluding other income, stood at ₹971 crore, up 44.5 per cent from ₹672 crore in FY24.

 

Risk factors

 

However, there are risks that could impact the company’s operations, financials, and future growth, according to the draft red herring prospectus. For instance, Lenskart has incurred losses in the past and may incur losses in the future too. Its geographic concentration also presents risk, as a significant portion of its revenue is generated from India. In terms of brand strategy, the company derives a majority of its revenue from sales under its own brands. Lenskart’s ambitions abroad are not without challenges, as its expansion into international markets subjects it to additional regulatory and operational risks.

 

Funding concerns are also flagged, with the DRHP noting that Lenskart may require additional financing in the future. Leadership continuity is another area of caution.

 

The company is dependent on its promoters and senior management, and the DRHP notes that its future success relies on the continued involvement of Peyush Bansal and other key executives.

 

Operationally, Lenskart’s private-label model exposes it to inventory and quality-related risks. Its channel strategy also introduces third-party vulnerabilities through its franchise and partner store network.

 

On the technology front, Lenskart’s geo-analytics tools help forecast revenue potential and payback periods.

 

A 500-member tech team builds and maintains its core infrastructure, including websites, mobile apps, warehouse systems, and AI platforms supporting the supply chain and customer experience.

 

According to the draft IPO papers, an estimated 1.3 billion people across India, Japan, Southeast Asia, and West Asia, 32 per cent of the global population, had refractive errors in FY25.

 

In India alone, the affected population rose from about 43 per cent (590 million) in FY20 to 53 per cent (777 million) in FY25, and is projected to reach 62 per cent (943 million) by FY30.