Lenskart Pitches to Bankers for $1 Bn IPO, Seeks $7 Bn Valuation

Eyewear start-up Lenskart has reportedly approached bankers to pitch for an Initial Public Offering (IPO) as it plans to go public by next year. The start-up aims to raise anywhere between $750 million to $1 billion and is targeting a valuation of around $7 to $8 billion.

Lenskart’s listing plans came amid the IPO boom of new-age tech companies in India with around 25 start-ups expected to hit Dalal Street in 2025. In 2023, 13 start-up IPOs went public and together raised over Rs 29,000 crore.

If listed, the eyewear major will join the list of Swiggy, Zomato, and One 97 Communications (Paytm) which have been successfully listed on stock exchanges. Peyush Bansal’s Shark Tank comrades Aman Gupta and Ritesh Agarwal led boAt and OYO are already in line to go public by the calendar year 2025, as per reports.

Also Read: Businesses Should Not Be Built On Model, But Out Of Passion: Peyush Bansal, Lenskart CEO

Lenskart Financials

As per the data by business intelligence platform Tofler, through effective cost management Lenskart cut its losses in the financial year (FY) 2024 by 84% to ₹10.15 crore, from ₹63.7 crore in the previous fiscal year.

Lenskart’s primary revenue source is the sale of their eyewear frames, lenses, and goggles, along with services like eye checkups.The start-up’s revenue surged 43% to ₹5,427.7 crore in FY24, compared to ₹3,788 crore in FY23. Total income jumped 42% year-on-year (YoY) to ₹5,609 crore.

Previous Investments

In June 2024, Lenskart’s valuation increased to $5.6 bn after Fidelity Management and Research Co and Temasek raised the company’s fair value by 12%.

Lenskart raised $200 mn in secondary investment from the fund managed by Fidelity, which raised the start-up’s value up from $4.5 bn during a $100 mn funding round in June 2023.

Also Read: Lenskart Raises $200 million from Temasek, Fidelity: Report

Fund Utilisation

Lenskart is planning to set up its largest eyewear manufacturing facility in Telangana with an investment of around 1,500 crore. The eyewear firm has signed a memorandum of understanding (MoU) with the Telangana government to establish the facility at Fab City.

The start-up operates more than 2,500 stores globally, with around 2,000 located in India. It also runs multiple stores in the UAE, Singapore, and Japan among others.