The company became a unicorn in 2021 with a $4.5 billion valuation after investments from SoftBank and others, and it has grown steadily since, reaching $6.1 billion by September 2025 before the IPO push. 

This places it among India's top eyewear players, with strong revenue growth of ₹6,652 crore in FY25 and profitability of ₹297 crore.

So what does their business look like?

Lenskart runs a direct-to-consumer eyewear business, designing and selling affordable glasses under its own brands like Vincent Chase and John Jacobs, for all ages and budgets. In FY25, they launched 105 new collections, including celebrity tie-ups, and sold 22.91 million units in India alone, making them the top prescription glasses seller by volume.

They provide eye care services like free or low-cost tests, remote video optometry at 298 Indian stores and 266 in Japan, and home checkups. This targets vision problems for 777 million Indians (53% of the population in FY25), plus rising cases in Asia.

India is their main market, but they've expanded internationally since 2019 to Southeast Asia, Japan, and the Middle East, selling 4.29 million units abroad in FY25.

Tech plays a big role for the company. It leverages AI for personalized recommendations, achieves 75% automation through robotic manufacturing in Bhiwandi (India), employs data analytics to identify market trends, and uses mobile apps for real-time inventory and order tracking.

This enhances efficiency and customer satisfaction across both their online platforms and physical stores.

How does it find and serve all its customers?

Now, let’s talk about its customer acquisition and service channels.

Lenskart finds and serves its customers using a highly integrated omnichannel and manufacturing strategy:

• Omnichannel Retail Experience:
   
  • Customers can shop online through Lenskart's app (100+ million downloads so far) and website, and enjoy their features like AI-powered virtual try-ons and personalized recommendations.
  • Offline, Lenskart operates 2,806 stores globally (2,137 in India, 669 abroad), combining company-owned, franchise, and partner locations to ensure reach and convenience.
  • Home try-on services and door-to-door eye testing with dedicated agents make access easier, especially for customers in remote or busy areas.
     
• Manufacturing and Supply Chain:
   
  • Lenskart manages its entire design and production chain in-house with a skilled 109-member team, keeping quality and innovation tightly controlled.
  • About 70% of all glasses are produced at its automated factories in India (Bhiwandi and Gurugram), which are ranked among the world's top two for capacity. There are also regional sites in Singapore and the UAE.
  • This centralized model makes next-day delivery possible in 58 Indian cities and 3-day delivery in 49 more.

Financials of the Company

Where is the IPO money going?

Now, most-importantly, why are they raising all the IPO money for?

Lenskart IPO has both parts: a "fresh issue" and an "Offer for Sale" (OFS).

It is split into a fresh issue of up to ₹2,150 crore (about 53.5 million shares) and an offer for sale (OFS) of up to ₹5,128 crore (127.6 million shares) by existing shareholders like founders Peyush Bansal and investors such as SoftBank and Temasek.

What will the new money be used for?

The ₹2,150 crore from the fresh issue will fund Lenskart's growth and operations, with key allocations including:

• Store Expansion: Spending to open more company-run stores in India, including lease payments and licenses, to grow the omnichannel network beyond the current 2,137 stores.
• Technology Upgrades: Investments in tech, cloud services, and AI to improve virtual try-ons, remote eye exams, and supply chain efficiency.
• Marketing and Branding: Funds for ads, promotions, and partnerships to increase brand awareness and attract customers in India, Southeast Asia, and Japan.
• Potential Acquisitions: Money set aside for buying other businesses to add products or enter new markets.
• General Corporate Needs: Remaining funds for working capital, paying debts, or other operations to support business growth.

What are the “no new funds” for?

Since the ₹5,128 crore OFS money goes straight to these sellers and not to Lenskart, the company gets nothing from the OFS, which is why it's called "no new funds for the company."

It will go to:

• Promoters like founder Peyush Bansal and possibly his wife Neha Bansal (who recently sold pre-IPO shares worth ₹90 crore).​
• Major investors such as SoftBank (largest seller, offloading ~₹1,500 crore), Temasek, Kedaara Capital, and others like Alpha Wave and TPG.​

Why Less New Funds for Lenskart?

The OFS is significantly larger than the Fresh Issue, hence it’s important to ask why the company is raising more money for its expansion than selling its stakes by the shareholders.

The OFS helps existing owners (founders and VCs) gain liquidity: they've invested over the years and now get returns. For example, Peyush Bansal's stake could yield over 20x returns on his initial investment, turning his net worth toward $1 billion, while SoftBank and Temasek see massive windfalls (e.g., SoftBank's 2020 investment at $1 billion valuation now benefits from the $8 billion IPO value). It's an exit route for early backers, allowing them to diversify without Lenskart taking on more shares or dilution beyond the fresh issue.

Here’s how the IPO money will benefit Lenskart despite its OFS>FO

Even without the larger portion of IPO money not going for Lenskart’s expansion, this structure helps Lenskart by:

• Boosting its visibility and credibility as a public company, attracting more customers and talent in the eyewear space.​
• Providing an orderly exit for investors, which can stabilize the stock post-listing (November 10, 2025).​
• Supporting growth in a huge market: The eyewear sector in Lenskart's key regions (India, Southeast Asia, Japan, Middle East) is projected to reach ₹3,601 billion by FY30, driven by rising vision issues.

Key Metrics on Lenskart services

• Unit Economics: Lenskart's stores recover costs in 18-24 months, with 20-25% profit margins per store that get better over time (overall profit margin hit 14.6% in FY25). Keep an eye on improvements from automation and bigger scale.
• Customer Acquisition Cost (CAC): It costs ₹500-700 to get each new customer, thanks to smart online ads and AI. This is balanced by loyal buyers (9.94 million in India last year) and average buys of ₹2,500-3,000. But higher ad prices could hurt if sales slow.
• Same-Store Sales Growth (SSSG): Sales at existing stores grow 15-20% yearly, thanks to more visitors and 25-30% buy rates, even with less ads—loyalty perks help. Tough times could drop it under 10%.
• Supply-Chain Resilience: Making 70% of products in-house lowers risks, but lens imports could face delays or price jumps. Factories like Bhiwandi keep delivery to 1-3 days; issues might add 5-10% to costs.
• After-Sales Quality: Returns stay low at under 5%, remakes at 2-3%, helped by AI try-ons and online fittings, keeping 74% margins safe. Bad service could raise this to 10% and cut profits—Lenskart uses apps to spot and fix problems quickly.

Potential risks to know about

Lenskart's IPO faces several risks outlined in its DRHP, stemming from its retail model, supply chain, and market dynamics. These could impact growth or profitability if not managed well.​

• Supply Chain Problems: If the main factories (like in Bhiwandi) slow down or stop due to worker issues, machine breakdowns, or shortages of materials, production could halt. Lenskart makes 70% of its glasses itself, so it's at risk. It also imports parts like lenses, which can face price hikes or delays from global issues.​
• Tough Competition: Lenskart competes with Indian brands like Titan Eye+ and big global names like Luxottica, plus many small local shops that control 69% of India's eyewear market. Organized brands like Lenskart will only hold 31% by FY30, so it has to work hard to gain more customers in a crowded field.​
• Rules and Legal Challenges: There are ongoing tax disputes (like GST) and needs to meet eyewear quality rules (e.g., BIS standards), which could lead to fines or hold-ups. Growing in places like Japan or UAE brings extra risks from changing laws and currency swings.​
• Money and Day-to-Day Risks: Lenskart lost ₹101 crore in FY24, showing it's sensitive to big spending on stores. It has over ₹500 crore in debt and needs cash for operations. If sales growth drops (it was 22.57% in FY25), things could get tight. Overseas sales (40% of revenue) face exchange rate ups and downs.​
• Market and Outside Factors: Demand for glasses grows with more eye problems (53% of Indians in FY25), but events like pandemics, rising prices, or people switching to contacts or surgery could lower sales.

Thorough Industry Check

• People are spending more on lifestyle brands as incomes rise and digital shopping grows. Lenskart stands out for affordable prices, direct-to-customer sales, and tech like virtual try-ons, helping it compete with local shops and expand quickly.
• Lenskart faces stiff competition from Titan Eye+, Himalaya Optical, Reliance’s Vision Express, and many small optical stores, as well as online brands like ClearDekho and EyeMyEye. These rivals offer wide ranges and have strong retail or digital presence, which can limit Lenskart’s market share growth and pressure its pricing.

(Final Verdict) Should I apply for this IPO?

We work hard to provide the most thorough analysis, breaking down every angle of an IPO - the strengths, the risks, and the valuation. All this to empower you with a clear picture to begin with, but the final decision is always yours to make. 

By reading this, you've done the essential homework, because as legendary investor Peter Lynch put it:

"If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards."