Lenskart Gears Up for $1 Billion IPO, Eyes $7 Billion Valuation

Eyewear startup Lenskart is gearing up for an Initial Public Offering (IPO) and has approached bankers to pitch for it. Lenskart aims to raise up to $1 billion and is targeting a valuation of about $7 billion. The IPO is expected to take place by early next year.

Strong Financial Growth

Lenskart has seen significant growth, with its revenue rising by 43% in FY24, reaching approximately ₹5,427.7 crore, up from ₹3,788 crore in FY23. The company primarily earns revenue by selling eyewear frames, lenses, and goggles, along with offering services like eye checkups. Through effective cost management, Lenskart reduced its losses by 84% to ₹10 crore in FY24, down from ₹63 crore in FY23.

Recent Investments and Valuation

Last year, Lenskart’s valuation increased to $5.6 billion after a fund managed by Fidelity raised the company’s fair value by 12%. In June, Lenskart raised $200 million in secondary investment from Temasek and Fidelity. This raised the company’s value to around $5 billion, up from $4.5 billion during a $100 million funding round in June 2023.

Expansion Plans and Competitors

Lenskart continues to grow its presence in India and abroad, particularly in Asia. The company operates using a “click-and-mortar” business model, providing a seamless customer experience through its online platforms, mobile apps, and over 2,500 stores, 2,000 of which are in India. It competes with other eyewear brands such as Titan Eyeplus, Vision Express, and Warby Parker.

Acquisitions and Technology Investments

Lenskart has made several acquisitions to expand its capabilities. This includes the purchase of Tango Eye, an AI-based computer vision startup, and Owndays, a Japanese eyewear brand, in a deal worth around $400 million.

Future Plans and Mega Factory

Lenskart is planning a major investment in the future with the construction of its largest eyewear manufacturing plant in Telangana. The company has committed ₹1,500 crore to this project and has signed a Memorandum of Understanding (MoU) with the Telangana government. The facility will be situated at Fab City, located within 60 km of Bengaluru’s Kempegowda International Airport.

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