Omnichannel eyewear giant Lenskart is gearing up for a blockbuster initial public offering (IPO) in 2025, targeting a valuation of $10 billion. This ambitious move would mark a significant leap from the company’s last funding round, where it was valued at $5 billion. The Indian eyewear behemoth plans to file its draft red herring prospectus (DRHP) by May 2025 and aims to go public later in the year.
Strategic IPO Planning and Market Optimism
According to sources, CEO Peyush Bansal and key investors are in advanced discussions with investment bankers, strategizing for a $1 billion IPO. However, market conditions at the time of listing will ultimately determine the final valuation. “Work is underway to file the DRHP by May so it can… get listed this calendar year,” an insider revealed.
While some within Lenskart are confident about securing a valuation exceeding $10 billion, they recognize the necessity of ensuring an attractive pricing structure for public market investors. The company’s strong financial performance, increased profitability, and market dominance support the rationale for this aggressive valuation.
Lenskart’s Path to Profitability and Financial Strength
Lenskart’s decision to go public follows a period of robust secondary share sales, which allowed early investors to partially exit without requiring a formal IPO. The company’s last significant transaction was a $200 million secondary round in June 2024, where it achieved a $5 billion valuation—doubling from its earlier primary capital raise of $4.5 billion. The high investor demand for Lenskart shares, even in secondary sales, underscores the company’s strong market positioning.
In preparation for its IPO, Lenskart has prioritized financial discipline and operational efficiency. The company significantly narrowed its net loss in FY24 to just ₹10 crore, a remarkable improvement from ₹64 crore in FY23. Meanwhile, its revenue surged by 43% year-on-year, reaching ₹5,428 crore.
Additionally, the company’s EBITDA more than doubled, growing from ₹403 crore in FY23 to ₹856 crore in FY24. This surge in profitability underscores Lenskart’s ability to scale efficiently while maintaining strong operational margins.
Technology-Driven Growth and Customer Satisfaction
CEO Peyush Bansal has long emphasized the critical role of technology in Lenskart’s growth. From customer experience enhancements to supply chain optimization and faster delivery times, technology remains at the core of Lenskart’s strategy. The company’s net promoter score (NPS)—a measure of customer satisfaction—has increased from 65 to over 80 in recent years, reflecting improvements in service quality.
“Tech is at the heart of everything we do, whether it’s improving the customer experience, optimizing the supply chain, or reducing delivery times,” Bansal said in an earlier interview.
Expanding Global Footprint and Market Leadership
Lenskart’s market dominance in India’s eyewear space is undisputed, thanks to its innovative omnichannel strategy and aggressive expansion. Backed by global investment giants SoftBank and Temasek, the company has also been making strides in international markets.
In 2022, Lenskart acquired premium eyewear brand Owndays in a $400 million deal, marking its expansion into Japan and Southeast Asia. Additionally, the company holds a significant stake in Paris-based Le Petit Lunetier, aligning with its strategy to become a global eyewear powerhouse.
Currently, Lenskart boasts an annual revenue run rate of $1 billion (approximately ₹8,400 crore). It produces 25 million frames and between 30-40 million lenses annually, demonstrating its vast production capabilities.
Manufacturing and Retail Expansion in India
As part of its long-term growth strategy, Lenskart is heavily investing in local manufacturing and offline retail expansion. Most of its production has shifted to its Rajasthan facility, and the company is investing $200 million in a new manufacturing plant in Telangana. This move is expected to boost its India export business and further reduce production costs.
While Lenskart’s online sales have been growing exponentially, the company is also strengthening its physical retail presence. It currently operates a network of 2,500 stores and plans to open 400 more locations in the near future, reinforcing its omnichannel strategy.
IPO Amid a Wave of Public Listings by Indian Startups
Lenskart’s IPO comes at a time when several late-stage Indian startups are preparing to go public. The upcoming IPO pipeline includes prominent names such as Zepto, Groww, Bluestone, PharmEasy, Oyo, Ather Energy, and Zetwerk, all eyeing listings in FY26.
Investor sentiment towards Indian IPOs remains positive, but companies are expected to carefully price their offerings to align with public market expectations. Lenskart’s strategic positioning and financial strength give it an edge, but market conditions will play a crucial role in its eventual valuation at listing.
Conclusion
Lenskart’s planned IPO represents a major milestone in India’s startup ecosystem, highlighting the country’s evolving consumer market and its growing influence in global business. The company’s strong financials, customer-centric approach, technological innovations, and aggressive expansion make it a compelling candidate for a successful public listing. As Lenskart moves toward its $10 billion valuation target, the industry and investors will keenly watch how the market responds to this eyewear giant’s ambitious plans.