Lenskart converts to public entity ahead of potential $1-billion IPO

Lenskart converts to public entity ahead of potential $1 billion IPO

Eyewear retailer Lenskart has officially become a public company, a key milestone as the Gurugram-based company prepares to launch its initial public offering (IPO).

The company’s board passed a special resolution to change its name from Lenskart Solutions Private Limited to Lenskart Solutions Limited during an extraordinary general meeting on May 30.

The move signals Lenskart’s intent to list on one or more Indian stock exchanges, though the company has not yet disclosed the size or the timing of the issue. In its filing, Lenskart said the name change would allow it to proceed with its proposed public offer, without sharing the details.

The development comes just months after Moneycontrol exclusively reported that Lenskart was in advanced talks to appoint a consortium of bankers, including Kotak Mahindra Capital, Axis Capital, Citi, Morgan Stanley and Avendus Capital, to steer its IPO process.

Sources told Moneycontrol the company is eyeing a public issue of more than $1 billion, which would make it one of the largest IPOs in India’s new-age consumer tech space.

Founded in 2008 by Peyush Bansal, Amit Chaudhary, Neha Bansal and Sumeet Kapahi, Lenskart has grown into India’s largest omni-channel eyewear brand, with an online presence as well as more than 2,000 physical stores.

The company entered the unicorn club in 2019 and is backed by marquee investors such as SoftBank, Temasek, Abu Dhabi Investment Authority (ADIA), Alpha Wave Global, KKR, Kedaara Capital and TPG.

In June 2024, Lenskart raised $200 million from Temasek and Fidelity at a $5 billion valuation. However, its financials saw a dip in FY24. It posted a net loss of Rs 10 crore on operating revenue of Rs 5,427 crore, according to regulatory filings. It had previously been profitable.

Lenskart’s IPO would be closely watched, not only as a test of investor appetite for consumer brands but also as a bellwether for other profitable or near-profitable startups seeking to tap the market after a long dry spell.

If successful, it would further cement Lenskart’s position as the leading player in India’s eyewear space.

In December, Lenskart signed an MoU with the Telangana government to set up a manufacturing facility with an investment of around Rs 1,500 crore. The plant, set to be established at Fab City, is expected to generate around 2,100 jobs.