Lenskart is gearing up for a major public offering, aiming for a valuation of $10 billion — double its current worth — as it prepares to file its draft red herring prospectus (DRHP) by May, sources familiar with the matter revealed. The eyewear giant is looking to raise $1 billion through its IPO, aligning itself with a wave of tech startups planning stock market debuts this year.
A slew of companies spanning e-commerce, fintech, and B2B sectors — including Zepto, Groww, Bluestone, PharmEasy, Oyo, Ather Energy, and Zetwerk — are in various stages of IPO preparations. However, industry experts suggest that valuations will be dictated by prevailing market conditions, especially for firms yet to turn a profit.
CEO In Talks To Determine Valuation
Lenskart’s CEO Peyush Bansal, along with key investors, has been in talks with investment bankers to determine the offering’s valuation, reported the Economic Times. However, the ultimate figure will depend on market sentiment at the time of listing.
In June 2023, Lenskart completed a $200 million secondary sale, valuing the company at $5 billion. This followed a primary funding round at a $4.5 billion valuation. Despite secondary shares typically trading at discounts, investor interest in Lenskart has remained robust.
Backed by SoftBank and Temasek, Lenskart dominates the eyewear market in India while expanding its footprint in Thailand. Its premium offerings include Owndays, a Japanese brand acquired for $400 million in 2022. Additionally, the company holds a significant stake in the French omnichannel eyewear brand Le Petit Lunetier.
Founded 15 years ago, the company has grown into a formidable player, boasting an annual revenue run rate of $1 billion (Rs 8,400 crore). Lenskart currently produces 25 million frames and between 30 to 40 million lenses annually.
Since its inception, the firm has raised close to $2 billion in funding, including secondary transactions where existing stakeholders offloaded shares to new investors. As it readies itself for a stock market debut, Lenskart has sharpened its focus on profitability. The company significantly reduced its losses while maintaining strong revenue growth.
Lenskart’s net loss fell sharply from Rs 64 crore in FY23 to Rs 10 crore in FY24, thanks to enhanced operational efficiencies driven by technology. “They (Lenskart) rely and leverage a lot from technology, which leads to operational efficiency in an omnichannel model,” a professional familiar with the business noted.
Meanwhile, the company’s operating revenue surged 43 per cent year-on-year to Rs 5,428 crore in FY24, while its EBITDA jumped to Rs 856 crore from Rs 403 crore in the previous year. With strong financials and investor interest, Lenskart is now poised to make a splash in the public markets later this year.
