Lenskart IPO: Eyewear Disruption Eyes the Public Market
India's tech-powered eyewear giant, Lenskart Solutions Limited, has filed its Draft Red Herring Prospectus (DRHP) with SEBI, aiming to raise ₹2,150 crore through a mix of fresh issue and offer for sale (OFS). As it steps into the public markets, Lenskart seeks to build on its dominance across India and key global markets like Southeast Asia and the Middle East.
Lenskart IPO marks a pivotal moment for both the company and the evolving eyewear landscape in India. Here's an in-depth look at the industry, Lenskart's business model, key strengths, financial performance, and potential risks.
Industry Overview
India’s eyewear market is undergoing a transformation. With increasing awareness of refractive errors, digitized lifestyles, and an aging population, demand for vision correction is on the rise. According to the Redseer Report, India’s eyewear market is projected to grow at ~13% CAGR, reaching ₹1,483 billion (~US$17.2 billion) by FY2030.
Prescription eyeglasses currently dominate the market (approx. 73% share). However, what’s most notable is the growing preference for organized retail, expected to make up 31% of the market by 2030—up from 19% in FY24.
About Lenskart
Lenskart is not just an eyewear retailer; it’s a vertically integrated, tech-enabled brand with end-to-end control over design, manufacturing, branding, and retail. Operating across India, Southeast Asia, Japan, and the Middle East, the company offers a wide portfolio of prescription eyeglasses, sunglasses, contact lenses, and accessories under multiple brands.
Its retail network spans:
- CoCo stores (Company-owned, company-operated)
- FoFo and CoFo models (Franchise-owned/company-operated)
- Online channels through its app and website
The company also owns Owndays, a leading Japanese eyewear chain, and operates regional manufacturing units in India, Singapore, and UAE.
Lenskart Strengths
- Omnichannel Reach: Over 2,500 touchpoints across physical and digital, with 2,723 stores globally.
- Proprietary Tech: AI-powered tools like Digital Try-Ons and Visual Analytics help improve customer experience and store efficiency.
- Manufacturing Control: Integrated frame and lens production at facilities in Gurugram, Bhiwadi, Singapore, and UAE.
- Brand Strength: Multi-brand strategy with products for value-seekers to premium users.
- Strong Market Position: One of the few scaled players in India’s fragmented eyewear market, with rapid international expansion via Owndays.
Lenkskart Risk Factors
- High dependence on China for components and manufacturing through its JV, Baofeng Framekart.
- Concentration of operations in Gurugram-Bhiwadi belt, exposing it to regional disruption.
- Seasonal demand volatility and currency fluctuations due to global presence.
- Significant investments in expansion and marketing could affect profitability in the near term.
- Intense competition from both unorganized players and rising D2C brands.
Financials Snapshot
Profit and Loss (₹ in million)
| FY | Revenue from Ops | EBITDA (excl. other income) | PAT |
|---|---|---|---|
FY23 | 3,788.028 | 259.709 | (63.757) |
FY24 | 5,427.703 | 672.091 | (10.154) |
FY25 | 6,652.517 | 971.056 | 297.340 |
Lenskart posted a revenue from operations CAGR of ~32% over three years, with FY25 marking its first net profit. Improved unit economics and scale efficiencies helped shift from losses to profitability.
Cash Flow Statement
In FY25, the company turned around its operating cash flows, with ₹1,230.632 crore generated from core operations, driven by better working capital management and profitability.
| Parameters | FY25 | FY24 | FY23 |
|---|---|---|---|
Profit Before Tax (in ₹crores) | 385.356 | 59.031 | 101.176 |
Net Cash from (used in) Operating Activities (in ₹crores) | 1230.632 | 487.383 | 94.740 |
Net Cash from (used in) Investing Activities (in ₹crores) | (265.867) | 158.676 | 2976.487 |
Net Cash from (used in) Financing Activities (in ₹crores) | (534.776) | (721.768) | 2776.703 |
Cash and Cash Equivalents (in ₹crores) | 654.211 | 219.993 | 291.832 |
Peer Comparison
There are no listed companies in India or globally which operate in a similar business model as that of Lenskart. Lenskart stands apart with its tech-first, vertically integrated D2C model, unlike peers that rely on traditional brick-and-mortar retail.
Lenskart IPO Offer Details
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Fresh Issue: ₹2,150 crores for expansion of CoCo stores, marketing, tech infrastructure, and inorganic growth.
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Offer for Sale (OFS): 132.3 million shares by early investors and promoters including Peyush Bansal and SoftBank’s SVF II Lightbulb.
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Pre-IPO Placement (optional): ₹4,300 million may be raised before RHP filing, reducing fresh issue size.
Final Words
The Lenskart IPO offers investors a chance to participate in a rare digital-first retail success story that’s eyeing global dominance. While the company has demonstrated strong growth and path to profitability, investors must weigh scaling risks and global dependencies carefully.
As India’s optical retail shifts from unorganized to organized, Lenskart is poised to capitalize on the trend—with its IPO unlocking the next chapter in its growth story.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.