Exclusive: Lenskart sets stage for IPO with public entity conversion

It looks like omnichannel eyewear retailer Lenskart’s draft red herring prospectus (DRHP) is around the corner, as the company has converted from a private to a public entity following board approval.

Lenskart's board has passed a special resolution to change its parent company’s name from Lenskart Solutions Private Limited to Lenskart Solutions Limited, according to the company's filings.

Media reports suggest that Lenskart aims to raise $1 billion via a mix of primary and secondary capital, targeting a valuation of $10 billion in its Initial Public Offering (IPO).

In June 2024, Lenskart secured $200 million through a secondary funding round, followed by a $20 million investment that included participation from founder Peyush Bansal which was exclusively reported  by Entrackr. Over the past 18 months, the company has raised nearly $1 billion and was valued at $5 billion during the secondary deal. Recently, early investor Fidelity marked up Lenskart’s valuation to $5.6 billion.

As of last year, Lenskart operated more than 2,500 stores worldwide, with about 2,000 in India. The company earned 42% of its revenue from international markets during FY24. Japan, Singapore, Taiwan (province of China), and Thailand are among its overseas markets.

Lenskart’s revenue from operations rose by 43% to Rs 5,427.7 crore in FY24 from Rs 3,788 crore in FY23. During the period, the company reduced its losses by 84% to Rs 10 crore in FY24 from Rs 63 crore in FY23. The company’s FY25 result has yet to be reported.

The IPO from Lenskart, when it comes, is expected to sail through for all the right reasons. The firm has built an aura of success, has built a large customer base, has a very visible offline presence as well, and finally, has a significant level of control over its supply chain now. The latter especially means better margins going ahead, which allows the firm to demand the valuation it does. Will Bansal leave a little more for investors on the table? It is unlikely, especially if the firm reports a strong Q2 or H1 in FY26. That might mean an IPO before Diwali for the firm. All it will hope for is a relatively stable market to avoid any last minute volatility, that has scuppered a few ambitious IPOs in the recent past.