Lenskart Accelerates Store Expansion to 450 Units as $10 Billion IPO Approaches
Eyewear retailer Lenskart plans to add 450 stores during the current financial year, marking its fastest expansion in three years as the company prepares for a landmark initial public offering. The aggressive expansion strategy would increase Lenskart's total store network to more than 3,150 outlets across 14 countries, representing a 34% rise from the 334 stores opened last year.
IPO Timeline and Valuation
Lenskart expects to complete its public listing before November 12, according to people familiar with the matter. The company aims to raise as much as ₹8,000 crore ($900 million) through the IPO, positioning it as one of India's top-five public offerings this year.
Industry sources have estimated Lenskart's valuation between $8 billion and $10 billion, reflecting strong investor demand for exposure to India's eyewear and retail sector. When contacted, Lenskart declined official comment on IPO specifics.
SEBI Regulatory Approval
The Securities and Exchange Board of India has cleared Lenskart's IPO, approving a primary fundraise of ₹2,150 crore through new share issuance. The offering comprises:
- New Shares: ₹2,150 crore primary capital raise
- Secondary Sales: Up to 132.3 million existing shares from current investors and founders
This structure allows major investors to partially exit while enabling the company to raise fresh capital for expansion and strategic initiatives.
Selling Shareholders and Investor Returns
Among notable selling shareholders are co-founders Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi, alongside major investors including:
- SoftBank Vision Fund II
- Schroders Capital Private Equity Asia
- PI Opportunities Fund-II
- Macritchie Investments
- Kedaara Capital
- Alpha Wave Ventures
Major investors including Kedaara, Chiratae Ventures, Ronnie Screwvala's Unilazer Ventures, and KKR are expected to realize significant returns through the IPO process. Notably, Lenskart has already delivered substantial returns to private investors through a $500 million funding round led by Abu Dhabi Investment Authority primarily via secondary share transactions.
Bulge-bracket investors such as SoftBank and ADIA are expected to maintain significant holdings post-listing, indicating continued confidence in the company's growth trajectory.
IPO Fund Utilization Strategy
Lenskart has articulated clear strategic uses for IPO proceeds:
Retail Expansion
- Capital expenditure for establishing company-owned, company-operated (CoCo) stores in India
- Payments for store leases, rent, and licenses
- Infrastructure development supporting retail network growth
Technology and Infrastructure
- Cloud infrastructure investments
- Technology platform upgrades
- AI and digital capability enhancement
Brand and Marketing
- Brand marketing and promotional campaigns
- Business development initiatives
- Market expansion support
Strategic Acquisitions and Corporate Uses
- Potential inorganic growth opportunities
- General corporate purposes
- Working capital requirements
Strong Financial Performance
Revenue Growth
Lenskart demonstrated robust topline expansion in FY25:
- FY25 Revenue: ₹6,652.5 crore
- FY24 Revenue: ₹5,427.7 crore
- Year-on-Year Growth: 22.5%
The sustained revenue growth reflects increasing consumer adoption of eyewear products and successful digital-to-physical distribution expansion.
Profitability Turnaround
A notable highlight is Lenskart's shift to profitability:
- FY25 Net Profit: ₹297.34 crore
- FY24 Net Loss: ₹10.15 crore
The impressive turnaround from marginal losses to significant profits demonstrates improving operational efficiency and unit economics maturation.
EBITDA Performance
Earnings before interest, tax, depreciation, and amortisation excluding other income reached:
- FY25 EBITDA: ₹971 crore
- FY24 EBITDA: ₹672 crore
- Growth Rate: 44.5%
The EBITDA growth rate exceeding revenue growth indicates improving operational margins and business model scalability.
Market Opportunity and Vision Correction Gap
Lenskart operates in a market with substantial untapped demand. By 2030, nearly one billion people in India are projected to require vision correction, yet fewer than 40% are expected to wear prescription glasses.
This significant gap between need and adoption presents a structural growth opportunity. Lenskart's direct-to-consumer focus combined with early investments in AI-led eye tests positions the company to capture incremental demand as vision care awareness and accessibility improve.
Digital Reach and User Engagement
Lenskart has built substantial digital presence reflecting market leadership:
- Mobile App Downloads: Over 100 million globally in FY25
- Website Visitors: 105 million visitors globally
- Strong user engagement metrics supporting online-to-offline integration
These digital metrics demonstrate successful brand building and consumer preference for Lenskart's platform for eyewear purchases.
Competitive Positioning
Lenskart competes with both traditional and modern eyewear retailers including Titan Eyeplus, Specsmakers, Vision Express, Warby Parker, and Italian giant Luxottica Group. The company's competitive advantages include:
- Retail Scale: India's largest eyewear retail network
- Digital Integration: Seamless online-to-offline experience
- Tech Innovation: AI-powered eye tests and smart eyewear
- Manufacturing: In-house production capability
- Distribution: Extensive supply chain network across regions
Company History and Growth Trajectory
Lenskart's journey from startup to pre-IPO scale demonstrates sustained execution:
- Founded: 2008
- Online Launch: 2010
- First Retail Store: 2013 in New Delhi
- Current Status: 3,150+ stores across 14 countries
The company operates manufacturing facilities in Bhiwadi with another under development in Telangana, supported by regional hubs in Singapore and the UAE.
Smart Eyewear and Technology Innovation
Lenskart is expanding beyond traditional eyewear into technology-enabled products:
Ajna Lens Investment
In July, Lenskart invested in Mumbai-based Ajna Lens, a deep-tech startup specializing in extended reality and AI-powered wearable technology. Though the deal value remains undisclosed, it represents Lenskart's first major commitment to AI-enabled smart glasses development.
B Camera Smartglasses Features
Lenskart's smart eyewear platform includes innovative payment capabilities. The company unveiled a new feature enabling direct Unified Payments Interface transactions through smartglasses—users can complete payments by scanning QR codes without requiring a mobile phone or PIN entry.
This technology advancement positions Lenskart at the forefront of smart eyewear innovation, potentially creating differentiated customer value propositions.
Store Expansion Strategy Details
The planned addition of 450 stores represents aggressive growth with specific characteristics:
- Number: 450 new stores in FY26
- Pace: Fastest expansion in three years
- Target Network Size: 3,150+ total outlets
- Geographic Reach: 14 countries across multiple regions
- Market Focus: Both metros and smaller cities for penetration
This expansion strategy aims to increase market accessibility and capture consumers in underserved geographies.
Market Structure and Competition Opportunity
India's eyewear market presents significant fragmentation and opportunity:
- Total Eyewear Stores: Over 90,000 across India
- Market Access Challenge: Vision care remains inaccessible to large population segments
- Lenskart's Advantage: Tech-enabled supply and distribution network
- Competitive Differentiation: Scale, digital integration, and AI capabilities
The market structure suggests significant consolidation opportunity as organized players with capital and technology compete against fragmented traditional opticians.
Geographic Presence
Lenskart's international footprint demonstrates global ambitions:
- Primary Market: India (largest Asia market)
- Regional Presence: Southeast Asia
- Middle East: Growing presence in Gulf region
- Infrastructure: Regional hubs in Singapore and UAE
Investment Implications
For potential IPO investors, Lenskart presents several attractive characteristics:
- Profitable operations with strong growth trajectory
- Large addressable market with significant penetration gap
- Successful digital business model with strong user metrics
- Technology innovation positioning for future growth
- Experienced investor base with significant retained holdings
- Clear capital deployment strategy supporting continued expansion
Risk Factors
Investors should also consider potential challenges:
- Execution risk on aggressive 450-store expansion plan
- Capital intensity of retail expansion impacting returns
- Competition from established players and international brands
- Technology adoption risks in smart eyewear category
- Macroeconomic sensitivity affecting discretionary eyewear purchases
- International expansion complexity across diverse markets
Valuation Context
The estimated $8-10 billion valuation reflects strong market confidence but carries implications for IPO returns. Key metrics supporting valuation include:
- ₹6,652.5 crore FY25 revenue base
- 22.5% annual revenue growth
- Strong EBITDA margins and profitability
- Large market opportunity with low penetration
- Technology and innovation leadership
Conclusion
Lenskart's planned IPO before November 12 represents a significant milestone for India's retail and eyewear sector. The company's planned $900 million fundraise at an estimated $8-10 billion valuation reflects investor confidence in its business model, growth prospects, and market opportunity.
The aggressive 450-store expansion plan demonstrates management confidence in unit economics and market demand. Strong FY25 financial performance with 22.5% revenue growth and ₹297.34 crore profitability validates the business model scalability.
Technology investments in smart eyewear and AI-powered eye tests position Lenskart for long-term competitive advantage. With a significant vision correction gap in India and early-mover advantages, the company appears well-positioned to capture incremental market share as the organized eyewear retail sector consolidates.
Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.
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