Lenskart IPO, Plans To Generate $1 Billion, Likely To Approach SEBI In May—What’s The Buzz Around This Upcoming Offering?

India’s leading omnichannel eyewear retailer, Lenskart, is gearing up for a blockbuster initial public offering (IPO), with ambitions to raise $1 billion. The company is targeting a valuation of $10 billion—double its last funding round—making it one of the most highly anticipated public listings in recent years.

Valuation and Investor Sentiment

Lenskart’s IPO valuation has been a focal point of discussion among investors and bankers managing the offering. Chief Executive Peyush Bansal, along with key stakeholders, has been engaging in conversations with market experts to determine the right timing and pricing for the IPO. While the plans remain subject to market conditions, the company’s solid financials and growth trajectory make it a strong candidate for a successful listing.

The eyewear major last raised capital in June 2023 through a $200-million secondary round at a valuation of $5 billion, following an earlier primary capital infusion at $4.5 billion. Interestingly, despite secondary sales typically trading at a discount, Lenskart shares have remained in high demand among both new and existing investors, signaling confidence in the brand’s potential.

Strong Backing and Market Leadership

Supported by marquee investors such as SoftBank and Temasek, Lenskart has solidified its position as the undisputed leader in India’s eyewear market. The company has also been expanding internationally, with a notable presence in Thailand and strategic growth through its acquisition of Japanese premium eyewear brand OwnDays in a $400-million deal in 2022.

The firm, which won top honors at the ET Startup Awards last year, is currently operating at an annual revenue run rate of $1 billion (approximately Rs 8,400 crore). Lenskart’s production capacity stands at 25 million frames and 30–40 million lenses annually, further reinforcing its leadership in the eyewear segment.

Since its inception, Lenskart has secured close to $2 billion in funding, including secondary transactions, where existing shares are sold to new investors without new capital inflows into the company. Additionally, the company owns a significant stake in the Paris-based omnichannel eyewear brand Le Petit Lunetier.

Path to Profitability and Financial Performance

In preparation for its IPO, Lenskart has been aggressively improving its profitability metrics. The company has achieved a sharp reduction in losses while maintaining steady revenue growth. In FY24, Lenskart’s net loss shrank to Rs 10 crore from Rs 64 crore in FY23, thanks to its technology-driven operational efficiencies.

Operating revenue surged 43% year-on-year to Rs 5,428 crore in FY24, while EBITDA more than doubled to Rs 856 crore, up from Rs 403 crore in the previous fiscal year. Lenskart’s reliance on technology for customer experience enhancement, supply chain optimization, and delivery efficiency has played a crucial role in this financial turnaround.

Moreover, the company has witnessed a significant improvement in its net promoter score (NPS)—a key customer satisfaction metric—rising from 65 in recent years to over 80. “Tech is at the heart of everything we do, whether it’s improving the customer experience, optimizing the supply chain, or reducing delivery times,” Bansal had stated in an interview last year.

Manufacturing Expansion and Retail Network Growth

As part of its long-term strategy, Lenskart is strengthening its local manufacturing capabilities. The company has consolidated most of its production at its Rajasthan facility and is further investing $200 million in a new manufacturing unit in Telangana. This move is expected to boost its India export business while driving down costs.

On the retail front, Lenskart is aggressively expanding its brick-and-mortar presence. While online sales have been a major growth driver in recent years, the company plans to add 400 more stores to its existing 2,500-store network. This omnichannel strategy is aimed at balancing digital and physical sales to cater to diverse consumer preferences.

Taking a Lens Through Lenskart

Lenskart has carved a niche for itself by manufacturing its own products and successfully fending off a long list of competitors, including e-commerce giants like Walmart-owned Flipkart and Amazon. It is five times larger than its nearest offline competitor, Titan Eyecare.

The company operates over 1,400 retail outlets under a franchise model, with the initial cost of opening a store estimated at Rs 30-35 lakh. Lenskart supplies products such as sunglasses, lenses, and accessories to these stores under brands like John Jacobs and Vincent Chase. In recent years, it has expanded into South Asia, the Middle East, and Japan. In addition to regular sales, Lenskart offers subscription plans to its customers.

Interestingly, Lenskart was not an initial favorite among top venture capital firms. Chiratae Ventures and Unilazer, the family office of veteran entrepreneur Ronnie Screwvala, led the initial funding rounds. The company later attracted private equity firms due to its profitability and strong unit economics.

IPO Bonanza 

Several late-stage startups are gearing up for IPOs in FY26, illustrating the growing acceptance of such companies among both retail and institutional investors. E-commerce, B2B, and fintech startups are among those preparing for public listings. Companies like Zepto, Groww, Bluestone, PharmEasy, Oyo, Ather Energy, and Zetwerk are at various stages of IPO readiness, as reported.

Despite the optimism among bankers, companies will price their offerings in accordance with prevailing market conditions at the time of listing, particularly those yet to achieve profitability, as witnessed in previous IPO cycles.

The Last Bit

Lenskart’s upcoming IPO is generating significant buzz in the market, not only due to its ambitious $10-billion valuation target but also because of its solid fundamentals, profitability trajectory, and market dominance. While the final outcome will depend on broader market conditions at the time of listing, the eyewear retailer appears well-positioned to make a strong debut on the public markets.

As investors keenly await SEBI’s approval, all eyes are on how Lenskart run’s the final stretch before its much-anticipated public offering. If successful, this IPO could be a landmark event for India’s startup ecosystem, setting a benchmark for consumer-tech listings in the country.