Lenskart Accelerates Expansion to 450 Stores as $10 Billion IPO Approaches

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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Zepto Raises $450 Million at $7 Billion Valuation; IPO Planned for 2026

Zepto Raises $450 Million at $7 Billion Valuation; IPO Planned for Next Year

Quick commerce startup Zepto has secured $450 million in a major funding round led by CalPERS, the California Public Employees' Retirement System, marking the U.S. pension fund's inaugural investment in the Indian logistics company. The round valued Zepto at $7 billion and included contributions from existing investors, positioning the company for its planned initial public offering next year.

Funding Round Details

The latest funding round comprised a combination of primary and secondary investments, demonstrating strong demand from institutional investors for exposure to India's fast-growing quick commerce sector. Besides CalPERS' leading participation, the round attracted existing backers including:

• Avenir
• Avra
• Lightspeed Venture Partners
• Glade Brook
• The Stepstone Group
• Nexus Venture Partners

The participation of CalPERS, one of the world's largest pension funds, provides significant validation of Zepto's business model and growth prospects. The investment demonstrates increasing appetite from major institutional players to gain exposure to India's e-commerce and logistics opportunities.

IPO Plans Accelerating

Following this funding round, Zepto has announced plans to pursue an initial public offering next year. The company's IPO trajectory reflects confidence in its business performance, market position, and ability to attract public market investors once it achieves profitability or demonstrates clear paths to sustainable unit economics.

The timing of the IPO announcement suggests Zepto management believes the company has reached sufficient scale and operational maturity to warrant entry into public markets, capitalizing on strong investor interest in India's technology and logistics sectors.

Impressive Growth Metrics

Co-founder and CEO Aadit Palicha highlighted Zepto's remarkable growth trajectory, demonstrating significant scaling of operations. The company has expanded daily order volumes substantially:

• Five Quarters Ago: Approximately 500,000 daily orders
• Current Period: 1.7 million daily orders

This near-quadrupling of daily order volumes within a five-quarter period underscores the velocity of quick commerce market adoption in India and Zepto's competitive execution in capturing market share. The company expects this growth momentum to continue through the coming quarters.

Recent Capital Raises

The CalPERS-led round follows closely on Zepto's earlier capital raising activity. The company recently secured Rs 400 crore (approximately $48 million) from Motilal Oswal Alternates as part of its ongoing capital expansion strategy ahead of the planned IPO.

This layered approach to fundraising demonstrates sustained investor confidence in Zepto and the company's success in securing capital at increasingly attractive valuations.

Total Capital Raised and Deployment

Since its inception, Zepto has raised a cumulative $2.3 billion, demonstrating its success in attracting venture capital across multiple funding rounds. The funding intensity reflects the competitive nature of India's quick commerce market and capital requirements for rapid scaling:

• Total Raised Since Inception: $2.3 billion
• Capital Raised Since January 2024: $1.8 billion

The accelerating fundraising pace over the past year underscores both market opportunity and capital intensity of building competitive quick commerce infrastructure at scale.

Financial Performance Trajectory

Revenue Growth

Zepto's revenue demonstrates strong topline expansion:

• FY23: Rs 2,026 crore
• FY24: Rs 4,454 crore (more than doubled year-on-year)
• FY25: Rs 11,110 crore ($1.3 billion)

The company's revenue has grown more than 5-fold over two years, reflecting rapid market expansion and increasing consumer adoption of quick commerce services.

Loss Trajectory and Path to Profitability

While revenue has expanded dramatically, losses have remained substantial though showing slight improvement:

• FY23 Losses: Approximately Rs 1,272 crore
• FY24 Losses: Rs 1,249 crore

The marginal loss improvement between fiscal years indicates the company is working toward operational efficiency, though significant losses persist. Zepto has not yet disclosed complete FY25 financial results, including profitability metrics.

Business Model Expansion

Beyond its core quick commerce grocery and food delivery operations, Zepto has strategically diversified into complementary categories to capture additional consumer spending:

Pharmacy Services Launch

Zepto Pharmacy represents a significant category expansion, positioning the company to compete with rivals including Swiggy Instamart, Blinkit, and Flipkart's Minutes. The pharmacy vertical capitalizes on:

• High-frequency delivery capabilities
• Established last-mile logistics infrastructure
• Consumer convenience preferences
• Growing telemedicine integration opportunities

Zepto Pharmacy has launched operations in select areas of major metropolitan markets including Mumbai, Bengaluru, Delhi NCR, and Hyderabad, allowing the company to test economics and refine operations before broader rollout.

Competitive Landscape Context

Zepto operates in an intensely competitive quick commerce market alongside well-funded rivals. The sector's major players include:

• Blinkit: Backed by Zomato and established quick commerce leader
• Swiggy Instamart: Leveraging Swiggy's existing customer base and logistics
• Flipkart Minutes: Utilizing Flipkart's retail infrastructure and customer relationships

Despite intense competition, Zepto has emerged as a significant player, reflected in its strong funding support and rapid growth metrics. The company's achievement of 1.7 million daily orders positions it as one of India's leading quick commerce platforms.

Valuation Analysis

The $7 billion valuation at the latest funding round reflects significant premium valuations typical of high-growth technology platforms in India. This valuation reflects:

• Rapid revenue growth exceeding 100% annually
• Large addressable market opportunity in quick commerce
• Competitive moat from logistics infrastructure
• Investor confidence in eventual profitability achievement
• Expected IPO pricing at premium to current private valuations

IPO Readiness and Market Conditions

Several factors support Zepto's 2026 IPO timing:

Market Receptivity

• Indian capital markets showing strong appetite for technology IPOs
• Investor interest in Indian e-commerce and logistics companies
• Track record of successful Indian startup IPOs
• Expected market conditions accommodating growth company valuations

Company Maturity

• Achieving scale in core business with 1.7M daily orders
• Establishing operational metrics and unit economics
• Demonstrating business model viability across geographies
• Building management depth and governance structures

Strategic Implications of CalPERS Investment

CalPERS' participation carries multiple strategic advantages:

• Credibility Signal: Validation from tier-one institutional investor
• Long-term Capital: Pension fund focus supports business building
• US Market Connection: Potential bridge to American institutional investors
• Governance Insights: Access to institutional investor perspectives on corporate governance
• IPO Preparation: Institutional investor involvement strengthens public market readiness

Investor Perspective and Risks

While Zepto's growth metrics are impressive, potential investors should consider:

Positive Factors

• Exceptional revenue growth trajectory
• Large market opportunity in quick commerce
• Strong customer adoption and daily order volumes
• Institutional investor backing from tier-one funds
• Management team execution quality

Risk Factors

• Continued substantial losses despite scale
• Uncertain timeline to profitability
• Intense competition from well-funded rivals
• Unit economics challenges in logistics businesses
• Regulatory risks in e-commerce and food delivery sectors
• Macroeconomic sensitivity affecting discretionary spending

Market Opportunity

The quick commerce sector in India represents a significant opportunity driven by:

• Urbanization increasing convenience preferences
• Smartphone penetration enabling seamless ordering
• Logistics infrastructure improving delivery capability
• Consumer willingness to pay premiums for rapid delivery
• Adjacent category expansion (pharmacy, electronics) broadening TAM

Future Growth Drivers

Zepto's medium-term growth prospects are supported by:

• Category Expansion: Pharmaceutical, electronics, and other categories
• Geographic Expansion: Penetration of tier-2 and tier-3 cities
• Customer Monetization: Premium services and subscriptions
• Operational Efficiency: Margin improvement through scale
• Technology Leverage: AI and data analytics optimization

IPO Expectations

When Zepto approaches IPO in 2026, investors can expect the company to emphasize:

• Revenue growth rate and market share metrics
• Pathway to profitability and unit economics improvement
• Competitive advantages and moat strength
• Management team and organizational capabilities
• Capital deployment plans for post-IPO growth

Sector Trends

Zepto's fundraising reflects broader trends in Indian technology sector:

• International institutional investors actively deploying capital in Indian startups
• Quick commerce achieving mainstream market acceptance
• Log-stage private companies preparing for public markets
• E-commerce and logistics sectors attracting significant capital
• Exit mechanisms increasingly important for venture capital ecosystem

Conclusion

Zepto's $450 million funding round at $7 billion valuation and announced IPO plans demonstrate the company's emergence as a significant player in India's quick commerce sector. With 1.7 million daily orders and revenue exceeding Rs 11,000 crore, Zepto has achieved impressive scale despite the competitive market landscape.

CalPERS' participation validates Zepto's business model while signaling strong institutional investor interest in Indian e-commerce and logistics opportunities. The planned 2026 IPO will provide an opportunity for public market investors to gain exposure to India's high-growth quick commerce sector.

However, investors should note that despite impressive revenue growth, the company continues reporting substantial losses. The path to profitability and unit economics sustainability will be key metrics to monitor as the company approaches public markets.

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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