Lenskart to File DRHP for IPO in the first fortnight of July

Wednesday, June 25th: Eyewear unicorn Lenskart will file DRHP for its IPO, in the first fortnight of July. It will go for a public DRHP instead of the confidential DRHP route.

Breaking from the Startup Pack For Transparency

While many of its peers, including Swiggy, Groww, Meesho, PhysicsWallah, and Boat, have chosen the confidential IPO filing route with the Securities and Exchange Board of India (SEBI), Lenskart is opting for full public disclosure.

The confidential route enables companies to maintain the privacy of sensitive business details during initial regulatory reviews, offering flexibility and protection during the pre-IPO phase. However, a public filing immediately makes the DRHP accessible to everyone, subjecting all business details, financial metrics, and strategic plans to public scrutiny. Lenskart’s choice for transparency suggests a robust and well-prepared business model.

Ambitious IPO Target: $1 Billion IPO at $10 Billion Valuation

Lenskart is reportedly preparing for a substantial $1 billion IPO, aiming for a valuation of $10 billion. This target is nearly double its previous private market valuation, reflecting its rapid growth and market leadership. To manage this significant public offering, Lenskart has enlisted a consortium of leading investment banks, including Kotak, Axis Capital, Citi, Morgan Stanley, and Avendus.

The company’s confidence is rooted in its dominant position within the Indian omnichannel eyewear segment and its expanding international presence. Its closest listed competitor, Titan Eye Plus, operates at a considerably smaller scale, and Lenskart currently faces no direct rival in the new economy space, giving it a unique competitive advantage.

Financial Snapshot and Expansion Plans

Lenskart had previously achieved profitability. In FY24, the company reported a loss of ₹10.15 crore on a revenue base of ₹5,427.7 crore. While this was a loss, it significantly pared down losses by 84% compared to ₹63.7 crore in FY23, demonstrating a focus on disciplined financial management alongside expansion. The company’s revenue in FY24 grew by 43.2% from FY23, a strong indicator of its market penetration. The company is yet to disclose its FY25 financials.

Founded by Peyush Bansal and Neha Bansal, along with Amit Chaudhary, Ramneek Khurana, and Sumeet Kapahi, Lenskart has expanded its footprint beyond India. It operates in key international markets, including the UAE, Singapore, and Japan. The company has aggressively invested in global expansion, including the acquisition of a majority stake in the Japanese eyewear brand OWNDAYS, reportedly valued at around $400 million in 2023.

This strategic move aims to solidify its position as a global eyewear leader, with plans to open up to 400 new stores in Southeast Asian countries over the next two years. Lenskart has also recently broken ground for the world’s largest eyewear facility in Hyderabad, Telangana, which will cater to both Indian and export markets.

To date, Lenskart has successfully raised over $1 billion in funding from marquee investors, including ADIA, ChrysCapital, SoftBank, Alpha Wave, Temasek, and Fidelity, underscoring strong investor confidence in its business model and growth trajectory.

Outlook: A Mature Player Entering Public Markets

By choosing to file its DRHP publicly, Lenskart is not only choosing transparency but also positioning itself as a mature and confident market player. This move sets the stage for what could be one of India’s most anticipated startup IPOs in 2025, potentially attracting significant investor interest given its leadership in a growing market and its clear path to sustained growth.

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