SBI Mutual Fund invests Rs 100 crore in Lenskart at $7.7 billion valuation ahead of IPO

SBI MF invests Rs 100 crore in Lenskart at $7.7 billion valuation ahead of IPO

SBI Mutual Fund has invested Rs 100 crore in eyewear retailer Lenskart Solutions Limited ahead of the company’s public issue, according to regulatory filings reviewed by Moneycontrol.

The investment values Lenskart at around $7.7 billion, marking a significant pre-IPO entry by one of India’s largest domestic fund houses.

Moneycontrol was the first to report on SBI Mutual Fund’s planned investment earlier this month. The move also comes close on the heels of billionaire investor Radhakishan Damani, founder of Avenue Supermarts (DMart), picking up Lenskart shares worth Rs 90 crore in a separate pre-IPO transaction.

Who invested and how much?

The investment was made through two of SBI MF’s alternative investment funds (AIFs) — SBI Optimal Equity Fund and SBI Emergent Fund — which together acquired 24.87 lakh shares from Neha Bansal, one of the company’s promoters, at Rs 402 per share. The total transaction value stood at Rs 100 crore, according to the company’s filings.

What are the IPO details?

Lenskart’s anchor round will open on October 29, followed by the public offer between October 30 and November 4. The company aims to raise Rs 2,150 crore through a fresh issue and an offer for sale (OFS) of up to 12.76 crore shares by existing investors.

The OFS will include sales by founder and CEO Peyush Bansal, SoftBank’s SVF II Lightbulb (Cayman), Kedaara Capital, ChrysCapital’s PI Opportunities Fund II, KKR’s MacRitchie Investments, and Alpha Wave Ventures.

How will the proceeds be used?

According to the revised RHP, proceeds from the fresh issue will be used for store expansion, lease and rental payments, technology and digital infrastructure, brand marketing, and potential acquisitions. The funds will be deployed over the next three years, while proceeds from the OFS will go directly to the selling shareholders.

How is Lenskart performing financially?

Lenskart 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. For the June 2025 quarter (Q1 FY26), it posted a profit of Rs 61.2 crore on revenue of Rs 1,894.5 crore, showing continued growth momentum.

The company’s EBITDA in Q1 FY26 rose to Rs 336.6 crore, up from Rs 183.4 crore a year earlier, supported by better cost control and higher sales across India and international markets.

What does the valuation imply?

Backed by SoftBank, Temasek, KKR, and Alpha Wave, Lenskart was last valued at $6.1 billion by Fidelity in its April 2025 portfolio update. The latest transaction with SBI MF at Rs 402 per share implies a valuation of about $7.7 billion, reflecting a substantial premium ahead of its IPO.

Upon listing, Lenskart is expected to become one of India’s most valuable consumer internet companies and the largest listed eyewear brand in the country.