Lenskart pre-IPO: Dmart’s RK Damani and SBI MF likely to pick up shares worth Rs 200 crore

Lenskart pre-IPO: Dmart’s RK Damani and SBI MF pick up shares worth Rs 200 crore

Billionaire investor Radhakishan Damani, founder of Avenue Supermarts (DMart), and SBI Mutual Fund are each likely to invest around Rs 100 crore in eyewear retailer Lenskart ahead of its initial public offering, sources told Moneycontrol.

The investment will be made through a secondary share purchase, ahead of Lenskart’s SEBI-cleared IPO that includes a fresh issue of Rs 2,150 crore and an offer for sale of about 13.2 crore shares by existing shareholders.

For SBI Mutual Fund, this marks its second investment in a new-age consumer internet company, following its recent deal with Urban Company.

Why are marquee investors buying in?

The planned investments by Damani and SBI MF indicate rising institutional and high-net-worth investor interest in Lenskart, which has emerged as one of India’s few profitable internet-led consumer companies gearing up for a public listing.

For SBI Mutual Fund, the deal reinforces its growing exposure to India’s digital-first consumer ecosystem, while Damani’s participation adds one of the country’s most respected value investors to Lenskart’s cap table ahead of the IPO.

What is Lenskart valued at?

US-based investment firm Fidelity recently raised the valuation of Lenskart to $6.1 billion in its latest portfolio update dated April 30. This represents a 22 percent markup from the $5 billion valuation at which Fidelity acquired shares in a secondary transaction in June 2024.

How does Lenskart stack up financially?

Backed by investors such as SoftBank, Temasek, KKR, and Alpha Wave, Lenskart has seen a strong financial turnaround in recent years. The company reported a net profit of Rs 297 crore in FY25, compared to a loss of Rs 10 crore in FY24, while revenues rose 23 percent year-on-year to Rs 6,652 crore.

Its gross margins improved by nearly 500 basis points to 69 percent, reflecting stronger operational efficiency and economies of scale across its vertically integrated supply chain.

What’s next for Lenskart?

The company plans to deploy proceeds from the fresh issue towards expanding company-owned stores, upgrading technology infrastructure, strengthening brand marketing, and potential acquisitions, according to people familiar with the matter.

Lenskart currently operates over 2,000 stores in India and around 650 outlets overseas, mainly across Southeast Asia and the Middle East. Its omnichannel model, combining offline retail with online convenience, has helped it dominate India’s organised eyewear segment, which remains largely underpenetrated.