Lenskart eyes $1-billion IPO, targets $7-billion valuation

Lenskart's most recent funding round in June 2023 raised $200 million from Temasek and Fidelity, which raised the company's valuation to $5.6 billion

Eyewear startup Lenskart is preparing for its initial public offering (IPO) and has approached bankers to pitch its plans to raise approximately $1 billion, according to reports quoting sources familiar with the matter. The company, led by Peyush Bansal, aims for a valuation of around $7 billion and hopes to go public by early next year.

Lenskart’s profitability and strong growth trajectory have caught the attention of investors. The company’s revenue from operations surged 43% to ₹5,427.7 crore in FY24, up from ₹3,788 crore in FY23. Lenskart’s efficient management also resulted in a significant reduction in losses, controlling them by 84% to ₹10 crore in FY24, compared to ₹63 crore the previous year.

Lenskart's most recent funding round in June 2023 raised $200 million from Temasek and Fidelity, which raised the company's valuation to $5.6 billion. In 2022, it acquired the Japanese eyewear brand Owndays in a deal valued at $400 million and also brought Tango Eye, a computer vision startup, into its fold.

Also Read : https://www.varindia.com/news/lenskart-acquires-owndays-in-400mn

As Lenskart expands its footprint both in India and internationally, its omni-channel business model, combining online platforms, mobile apps, and physical stores, has proven successful. The company currently operates over 2,500 stores globally, with approximately 2,000 located across India. This expansion is complemented by strategic acquisitions to enhance its technological capabilities.

In addition to its IPO plans, Lenskart has ambitious plans for further growth. In April 2024, Bansal announced that the company is looking for 25 acres of land near Bengaluru to set up its largest eyewear manufacturing facility. Lenskart has signed a memorandum of understanding with the Telangana government to invest approximately ₹1,500 crore in establishing a state-of-the-art manufacturing facility at Fab City.

As Lenskart positions itself for significant expansion, the company's valuation could potentially rise to $6 billion with ongoing discussions for a $200–300 million secondary share sale. With competition from both global and domestic eyewear players, Lenskart's ability to adapt and scale its operations positions it well in the eyewear market.