Lenskart’s IPO Ambition: When Will the Eyewear Giant Go Public?

Lenskart, India’s leading omnichannel eyewear retailer, is reportedly gearing up for a public listing, targeting a potential $10 billion valuation—double its last funding round. According to news reports, the company is preparing to file its Draft Red Herring Prospectus (DRHP) by May 2025, setting the stage for a significant market debut.

Discussions around the valuation and IPO structure are ongoing between Lenskart’s chief executive Peyush Bansal, key investors, and bankers managing the offering. However, the final valuation and launch will depend on market conditions closer to the listing date.

Valuation and Investor Interest

Lenskart has seen a surge in investor interest over the past few years. Unlike traditional primary funding rounds, the company’s recent capital infusions have been driven by secondary deals, where existing investors offload stakes to new investors.

In June 2023, Lenskart closed a $200 million secondary funding round at a $5 billion valuation, up from its previous primary capital round valuation of $4.5 billion. Typically, secondary share sales occur at a discount, but in Lenskart’s case, strong demand from investors has maintained its valuation trajectory.

IPO Market Sentiment and Competitive Landscape

Lenskart’s IPO ambitions align with a broader trend of late-stage startups heading for public listings in FY26, indicating a growing acceptance of new-age companies among institutional and retail investors.

The eyewear retailer, backed by prominent investors such as SoftBank and Temasek, dominates the Indian market and is expanding internationally. Its acquisition of Japanese brand Owndays in 2022, in a $400 million deal, marked its foray into premium eyewear. Thailand is also emerging as a key growth region for the brand.

Scaling Operations and Revenue Growth

Founded 15 years ago, Lenskart has achieved an annual revenue run rate of $1 billion (₹ 8,400 crore). The company produces 25 million frames and between 30-40 million lenses annually.

In FY24, its operating revenue surged 43% year-on-year to ₹5,428 crore, while EBITDA more than doubled to Rs 856 crore, up from ₹403 crore in FY23. Additionally, net losses reduced significantly from ₹64 crore in FY23 to ₹10 crore in FY24, highlighting operational efficiencies.

The company has been investing heavily in manufacturing, shifting most of its production to its Rajasthan facility and allocating $200 million towards a new plant in Telangana to bolster its export capabilities.

Omnichannel Expansion Strategy

Lenskart’s business model is deeply integrated with technology, allowing for a seamless omnichannel experience. While online sales have driven substantial growth, the company remains committed to offline expansion, planning to add 400 more stores to its existing 2,500-store network.

The company also holds a significant stake in the Paris-based eyewear brand Le Petit Lunetier, reinforcing its global presence.

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