SoftBank-backed Lenskart, an eyewear startup preparing to go public later this year, is expected to end the previous financial year (FY25) with revenues of $755 million (around Rs 6,415 crore) split across international and domestic businesses, according to a presentation made to investors a few months ago, reviewed by Moneycontrol.
Between FY23, when Lenskart had revenues of $443 million, and FY24, when its top line stood at $645 million, the company grew 46 percent year-on-year (YoY). However, from FY24 to FY25, Lenskart’s revenue growth slowed to 17 percent YoY as it scaled, the documents showed.
In most cases, companies choose to grow at a moderate pace after achieving a certain scale as they prioritise profitability.
Lenskart did not reply to Moneycontrol’s queries.
The company is also in the final stages of filing its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, with plans to raise $1 billion (Rs 8,500 crore) at a valuation of $10 billion (Rs 85,000 crore). Unlike many new age companies that have chosen to go via the confidential filing route, Lenskart DRHP will be open to the public.
Inside Lenskart’s revenue break up
While a bulk of Lenskart’s $755 million FY25 sales came from its India business, its international business expanded during this period. Lenskart estimated that it closed FY25 with $455 million (Rs 3,865 crore) in revenues from its India business, with the remaining $300 million (Rs 2,550 crore) coming from its international operations.
While 60 percent of its revenues have come from India since FY23, the remaining have come from international markets, largely Southeast Asia (SEA). One of its significant acquisitions overseas was its buyout of Japan’s Owndays for a sum of around $400 million in June 2022. It also has a joint venture in China to manufacture its spectacles.
“We have just started in India,” Lenskart said in its internal documents. While it claims a market share of 10 percent, it estimated that its market share will increase to around 25 percent by the end of FY30 as the market matures and becomes more organised. Its key rival is Tata-owned Titan Eyeplus.
Lenskart further said that India, Asia and the Middle East together present a total addressable market (TAM) of $30 billion.
Lenskart’s documents also showed that it had earnings before interest, taxes, depreciation and amortisation (EBITDA) margins of 18-22 percent in FY25.
Gross margin at 70%
A key reason why Lenskart has also been able to expand margins over the years is because of its healthy gross margins. The company has an average cost price (ACP) of $8 (Rs 680) and an average selling price (ASP) of $28 (Rs 2,380), as per the document.
That translates to a gross margin of 70 percent for Lenskart, which puts it in the same league as large companies such as Germany’s Fielmann, Japan’s JINS and others.
Healthy gross margins combined with few organised players positions Lenskart strongly ahead of its public market debut scheduled for later this year. The company had around $200 million (Rs 1,700 crore) in net cash as of H1FY25, per the document.
It is however likely that the cash position may have changed as the company increased operational efficiency or decided to invest in other avenues to scale up operations.
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