Inside Eyewear Giant Lenskart's ₹8,000 Cr IPO: Investor Exits, Risks, Fund Allocation & More

India’s biggest eyewear retailer Lenskart has filed its draft red herring prospectus (DRHP) with market regulator Sebi (Securities and Exchange Board of India) for IPO worth ₹8,000 crore. The IPO comprises fresh issue of shares worth ₹2,150 crore and an offer-for-sale of up to 132.3 million shares.

Existing investors, including Kedaara Capital, SoftBank, and Alpha Wave will offload their stakes in Lenskart IPO. The total issue size is anticipated to be around ₹7,500-8,000 crore.

Founded in 2010 by Peyush Bansal, Amit Chaudhary and Sumeet Kapahi to address gaps in an unorganised eyewear market, Lenskart distinguished itself with affordable, stylish frames sold online, supported by innovative services such as home eye check‑ups, virtual try‑ons and free home trials.

Who’s Selling and How Much?

As a part of OFS component, several key investors are set to trim their stakes in Lenskart via IPO. SoftBank-backed SVF II Lightbulb (Cayman) plans to sell 2.6 crore shares, while Schroders Capital will offload 1.9 crore shares.

Other selling shareholders include Premji Invest’s PI Opportunities Fund II who will offload 87 lakh shares, Temasek’s MacRitchie Investments will sell 78.6 lakh shares, Kedaara Capital Fund II (73.6 lakh), and Alpha Wave Ventures LP (66.6 lakh).

From the promoter group, Peyush Bansal is offloading two crore shares. Fellow cofounders Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will each sell between 28.7 lakh and 57.4 lakh shares.

The OFS also sheds light on the return multiples for investors. For instance, Premji Invest entered at ₹24.14 per share and stands to make a return which is expected to be 4.4 times higher than Alpha Wave Ventures (which invested at ₹105.92) and four times more than Temasek’s MacRitchie (entry price ₹97.84).

Where Lenskart IPO Funds Will be Used?

The start-up has planned to leverage IPO proceeds in setting up new stores across the country. In addition, it will also use the funds for paying rents of existing stores, investment in technology and cloud infrastructure, marketing, inorganic acquisitions, and general corporate purposes.

To be specific, Lenskart plans to allocate ₹272.6 crore o set up 620 new company-owned stores across India by FY29. An additional ₹591.4 crore will be used for lease deposits on its existing outlets.

On the technology front, the company has earmarked ₹213.4 crore for investments in cloud infrastructure and AI-led fulfilment systems, including the development of robotic lens labs.

To further build visibility and drive customer acquisition, ₹320 crore has been kept for brand marketing and promotional activities, positioning Lenskart for sustained growth post-IPO.

“We intend to add additional logistics facilities, further improve inventory management efficiencies through analysis of warehouse and logistics centers, fluctuations in order volumes and allocation of the right distribution point, as well as identify operational and commercial synergies with third party logistics partners to ensure optimal fulfilment cost,” it added.

What Are Key Risks Investors Should Watch?

Despite its rapid growth, the draft prospectus outlines several operational and financial risks. One of the major concerns is Lenskart’s dependence on its Gurugram industrial hub, which includes facilities in Bhiwadi and Gurugram. Any disruption at this facility can significantly hamper production.

It is also setting up a new lens manufacturing unit in Telangana, for which, it has signed a ₹1,500 crore MoU with the state. It is expected to generate over 2,100 jobs. However, potential delays in project execution could affect its commercial rollout and future capacity expansion.

As of March 31, 2025, Lenskart had outstanding borrowings worth ₹345.9 crore. Any breach of debt covenants or inability to service these obligations could hurt its operations. Furthermore, if the funds allocated for acquisitions fall short, the company may need to seek additional capital to support its expansion plans.

“We mainly derive revenue from our operations in India and the performance and growth of our business is significantly dependent on the performance of the Indian economy. In the past, the Indian economy has been a ffected by global economic uncertainties, liquidity crisis, domestic policies, global political environment, volatility in interest rates, currency exchange rates, commodity and electricity prices, rising inflation rates and various other factors,” it further noted.

How Is Lenskart Valued?

The start-up has valued itself at ₹70,000-75,000 crore ahead of the public issue. Promoters like Peyush Bansal, Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will offload their stakes in the IPO. Currently, these promoters own less than 24% stake in the eyewear platform. Of this, Peyush owns about 10.28% stake.

The book running lead managers of Lenskart IPO are Morgan Stanley, Kotak Mahindra, Avendus Capital, Axis Capital, Citigroup, and Intensive Fiscal Services. It has raised $200 million from Temasek Holdings Pte and Fidelity Management & Research at a $5 billion valuation.

After the funding round, Fidelity had revised its internal estimate of Lenskart valuation to $6.1 billion.

How Lenskart Has Performed in FY25?

The SoftBank-backed start-up clocked around ₹6,415 crore in revenue, representing a growth of 17% year-on-year compared to ₹5,427 crore in FY24. While a bulk of Lenskart’s FY25 sales came from its India business, its international business expanded during the same period.

From its India business, Lenskart revealed that it closed FY25 with $455 million in revenues. And the remaining $300 million came from its global business operations. It is pertinent to note that since FY23, India has contributed about 60% of Lenskart’s total revenue, with the rest coming from the global markets, particularly Southeast Asia.

The key driver of global expansion was Lenskart’s $400 million acquisition of Japan-based Owndays in June 2022, which strengthened its presence across Asia. In addition, the company has also established a manufacturing joint venture in China to support its growing global eyewear demand.

It also entered FY25 with a strong net cash position of approximately $200 million as of first half of last fiscal year. This provided significant liquidity headroom as it prepares to raise capital via its upcoming IPO. The company’s EBITDA margins were also estimated between 18-22%, indicating healthy profitability even as growth slowed from the previous year, when the number stood at 43%.