Lenskart IPO: Issue size, investor exits, expansion plans, risks and more

Peyush Bansal, co-founder and CEO, Lenskart

Eyewear retailer Lenskart has filed draft papers with the Securities and Exchange Board of India (SEBI) for its initial public offering. The IPO will include a fresh issue of Rs 2,150 crore and an offer-for-sale (OFS) of 13.2 crore shares by investors and promoters.

The filing, first reported by Moneycontrol on July 28, offers a clearer view of Lenskart’s next chapter where expansion plans, a retail ramp-up and investor exits are in focus.

Backed by marquee investors, including SoftBank, Temasek, Premji Invest and ADIA, the company plans use the proceeds to widen its store network, invest in technology and strengthen its brand.

Exit mode: high definition

The IPO will give Lenskart’s earliest investors a chance to unlock returns.

In the OFS, SoftBank-backed SVF II Lightbulb (Cayman) is selling 2.6 crore shares and Schroders Capital 1.9 crore. Premji Invest’s PI Opportunities Fund II will offload 87 lakh shares, Temasek’s MacRitchie Investments 78.6 lakh, Kedaara Capital Fund II 73.6 lakh and Alpha Wave Ventures LP will sell 66.6 lakh shares.

On the promoter side, Peyush Bansal will sell two crore shares, while co-founders Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will each offload between 28.7 lakh and 57.4 lakh shares.

The exit multiples offer a view of shareholders’ returns. These are calculated by comparing each investor’s weighted average cost of acquisition per share with the estimated IPO price.

For example, Premji Invest, which bought in at Rs 24.14 per share, is set to exit at a value that is 4.4x higher than Alpha Wave Ventures (which acquired shares at Rs 105.92 apiece) and 4x more than Temasek’s Macritchie Investments (entry price of Rs 97.84 apiece).

Among the founders, Neha Bansal acquired her stake at a much lower valuation than her peers, giving her an expected return that is 2.4x higher than Peyush Bansal’s. Peyush, in turn, is expected to make an exit that is 5.7x higher than Alpha Wave’s and 5.3x higher than Temasek’s.

Money plan 

Of the Rs 2,150 crore in fresh proceeds, Rs 272.6 crore will go towards 620 new company-owned company operated (CoCo) stores in India by FY29, while Rs 591.4 crore has been earmarked for lease deposits for its existing CoCo outlets.

The company will also invest Rs 213.4 crore in technology and cloud infrastructure, with plans to enhance AI-led fulfilment and robotic lens labs.

According to the company, robotic lens labs, centralized supply chain, and growing AI-led fulfilment operations have allowed it to enable Next Day Delivery in 40 cities.

A sum of Rs 320 crore has been set aside towards brand marketing and business promotion.

Risks in clear view

While Lenskart has scaled quickly, the draft document outlines several risks.

Heavy reliance on its Gurugram industrial cluster (covering its Bhiwadi and Gurugram facilities) presents concentration risk — any disruption can dent production capabilities.

The company’s planned lens manufacturing plant in Telangana, part of a Rs 1,500 crore MoU with the state government, is expected to create 2,100 jobs. However, delays in planning or construction can affect rollout timelines and commercial readiness.

As of March 31, 2025, its total borrowings stood at Rs 345.9 crore, and not being able to maintain its debt agreements may adversely impact business.

The company may need to explore alternative funding options if the proceeds set aside for acquisitions prove insufficient.

Financial report card

After reporting a loss of Rs 10.2 crore in FY24, Lenskart turned profitable in FY25 with a net profit of Rs 297.3 crore. Operating revenue rose to Rs 6,652.5 crore, up 22.5 percent from the previous view.

EBITDA grew to Rs 1,115 crore from Rs 763 crore in FY24 and Rs 302 crore in FY23. Margins also improved from 8 percent to 14 percent to 17 percent over the past three years.

The company has 2,723 stores — 2,067 in India and 656 overseas and has recorded over 100 million cumulative app downloads.

The company has claimed a 98 percent repeat order rate over two years in India.

Lens on pay cheques

Peyush Bansal will draw a fixed annual salary of Rs 6 crore, while co-founders Neha Bansal and Amit Chaudhary will receive Rs 3 crore each. The compensation came into effect on April 1, 2025 after board and shareholder approvals.

Among board members, Ashish Kashyap (INDmoney) and Sayali Karanjkar (PaySense) will each draw Rs 30 lakh annually. Veteran director Jayesh Tulsidas Merchant (ex-CFO, Asian Paints) will receive Rs 42 lakh, and Bijou Kurien (ex-Titan COO) will draw Rs 34 lakh.

Ahead of the bell

While the DRHP does not disclose the company’s target valuation, Moneycontrol previously reported that Lenskart could eye a $1 billion IPO at a valuation of around $10 billion. If it proceeds at that scale, the listing could be among the largest in India’s new-age consumer tech space.

Lenskart's IPO may serve as a key test of public investor appetite for scaled consumer internet brands with clear visibility.