Lenskart plans $10b IPO

Lenskart, the omnichannel eyewear retailer that has revolutionized the eyewear sector in India, is preparing to make waves with its Initial Public Offering (IPO). Aiming for a $10 billion valuation, Lenskart's public debut is expected to reshape the landscape of the Indian startup ecosystem. With aggressive growth strategies, expanding global reach, and strong financial performance, Lenskart is set to become one of the most anticipated IPOs in India.

But what does the future hold for the company, and how will its IPO impact the Indian eyewear industry?

Lenskart's IPO Journey: An Overview

Lenskart, founded in 2010 by Peyush Bansal, has evolved from a modest online eyewear retailer into one of India’s most recognized eyewear brands. The company’s meteoric rise has been fueled by innovative business strategies, a focus on customer satisfaction, and large-scale investments. As the company gears up for its IPO, it aims to raise $1 billion through the offering.

The IPO's valuation is set to touch an impressive $10 billion, which marks a significant leap from the last funding round. Lenskart's founders and key investors have been in discussions with bankers, weighing the best course of action for its public debut. With plans to file the Draft Red Herring Prospectus (DRHP) by May 2025, Lenskart plans to list on Indian stock exchanges before the end of the year, provided market conditions are favourable.

A Closer Look at Lenskart’s Rapid Growth

Since its inception, Lenskart has been a game-changer in the Indian eyewear industry. The company has built a vast portfolio and has made remarkable strides both in terms of revenue and expansion.

Revenue and Market Leadership: Lenskart has achieved annual revenues of over $1 billion (around ₹8,400 crore) and is a dominant player in the Indian eyewear market. The company manufactures an impressive 30-40 million lenses and 25 million frames annually, solidifying its position as a major force in the sector.
Acquisitions and Global Expansion: Lenskart’s acquisition strategy has played a vital role in expanding its footprint beyond India. The company acquired the Japanese eyewear brand Oneday for $400 million in 2022, marking its entry into the Japanese market. Additionally, its investment in the French eyewear brand Le Petit Lunetier has further solidified its presence in the global market.

Strong Financial Trajectory and Path to Profitability

One of the key factors behind Lenskart's IPO success is its strong financial performance, underscored by consistent revenue growth and improved profitability metrics.

Improved Financials: Lenskart has managed to significantly cut its losses over the past year. Its net loss, which stood at ₹640 million in FY23, was reduced to ₹100 million in FY24, reflecting the company’s ability to streamline operations effectively. Additionally, operating income grew by 43% year-on-year, from ₹542.8 billion in FY23 to ₹5,428 crore in FY24.
Profitability Metrics: Lenskart’s EBITDA also showed a remarkable improvement, more than doubling from ₹403 million in FY23 to ₹856 million in FY24. These positive financial results not only strengthen investor confidence but also highlight Lenskart’s operational efficiency.
Customer Satisfaction: Lenskart's commitment to customer satisfaction has paid off, as evidenced by a significant increase in its Net Promoter Score (NPS), a metric that measures customer satisfaction and loyalty. The score surged from 65 to over 80, underscoring Lenskart’s strong consumer base and brand loyalty.

Lenskart’s Business Model and Expansion Plans

Lenskart's omnichannel business model—integrating both online and offline sales channels—has been pivotal to its success. The company is also doubling down on local manufacturing and expanding its retail network, which will further strengthen its market presence.

Local Manufacturing and Cost Reduction: Lenskart has made substantial investments in local manufacturing, with a focus on cost reduction and improving product quality. The company has shifted most of its production to its Rajasthan factory and is investing $200 million in a new manufacturing facility in Telangana. This move will help boost its export business and reduce manufacturing costs.
Retail Expansion: While online sales have outpaced offline growth in recent years, Lenskart is planning to expand its retail presence. The company aims to add 400 stores to its existing 2,500 outlets. This retail expansion will be crucial in reaching new customers and further solidifying its dominance in the Indian market.

Lenskart's Global Aspirations

Lenskart's growth strategy is not limited to India.

Japan and France Market Growth: With its acquisitions in Japan and France, the company is positioning itself as a global eyewear player. Its recent acquisition of the Japanese brand Oneday for $400 million and its growing stake in Le Petit Lunetier reflect Lenskart's long-term vision of expanding its international footprint.
Thailand Market Growth: Lenskart also sees significant growth potential in Thailand, where it expects to expand its operations. The company aims to capture a substantial share of the Southeast Asian eyewear market, where the demand for affordable yet high-quality eyewear is growing rapidly.

The IPO Buzz: More Than Just a Public Listing

Lenskart’s upcoming IPO is more than just a significant event for the company—it is a symbol of the maturation of the Indian startup ecosystem. With the growing number of Indian startups planning to go public, Lenskart’s IPO will serve as a blueprint for other companies seeking to raise capital through the stock market.

As Lenskart prepares to go public, it is expected to set a precedent for other startups, particularly in the consumer-facing sectors, to follow suit. The company’s success story is one of resilience, ambition, and a clear focus on execution. If the IPO meets its target—or exceeds it—it could serve as an inspiration for future Indian startups looking to venture into the public market.

What Does the Future Hold for Lenskart?

Looking ahead, Lenskart’s future looks promising. The company is poised for continued growth, both domestically and internationally. The IPO proceeds will likely fuel further investments in technology, manufacturing, and product innovation, enabling Lenskart to expand its product offerings and explore new markets.

The company’s strong financial performance, coupled with its innovative business strategies, positions it to thrive in an increasingly competitive market. Whether the IPO results in a $10 billion valuation or higher, one thing is for certain: Lenskart’s journey is far from over, and the company’s IPO could mark the beginning of an exciting new chapter.

Lenskart's IPO Is a Milestone for India’s Startup Ecosystem

Lenskart’s IPO is set to be a major milestone in the Indian startup ecosystem. As the company continues to expand and innovate, it is likely to inspire other Indian startups to pursue public listings and unlock new growth opportunities. The IPO represents not just a company’s financial move but a reflection of the growing confidence in India’s startup scene.

For Lenskart, the IPO is a crucial step toward solidifying its position as a global leader in the eyewear market. As the company prepares for its public debut, all eyes are on Lenskart to see how it will shape the future of the Indian startup ecosystem and the global eyewear industry.

With inputs from agencies

Image Source: Multiple agencies