LensKart Submits Draft Proposal to SEBI for an IPO Worth INR 2,150 Crore
LensKart Eyes Growth with IPO Proceeds and Acquisitions
In a significant move, Indian ecommerce giant LensKart has announced its plans for the funds raised from its initial public offering (IPO). The company, headquartered in Gurugram, aims to invest the proceeds primarily in capital expenditure, technology investment, advertising and brand marketing, inorganic acquisitions, lease and rental expenses for existing stores, and general corporate purposes.
LensKart, founded in 2008 by Peyush Bansal, Amit Chaudhary, Neha Bansal, and Sumeet Kapahi, has seen impressive growth over the years. In the financial year ended March 2025 (FY25), the company's revenue from operations grew 22.6% to INR 6,652.5 Cr from INR 5,427.7 Cr in FY24.
The IPO will comprise an offer for sale (OFS) of up to 13.2 Cr shares by existing investors, including SoftBank, Schroders, PI Opportunities, Macritchie Investments, Kedaara Capital, and Alpha Wave Ventures. Peyush Bansal also plans to sell up to 2 Cr shares.
A significant portion of the funds will be allocated for capital expenditure. LensKart plans to set up 620 new company-owned stores across India by FY29, expanding their physical retail presence. Additionally, INR 591.4 Cr will be allocated toward lease deposits and rental payments for current stores, ensuring stability and expansion of their omnichannel footprint.
The company also intends to invest heavily in technology and cloud infrastructure. A significant portion of funds will be invested in upgrading technology systems, including cloud infrastructure, to enhance digital capabilities and operational efficiencies.
Brand marketing will also receive a boost with the funds. The company has earmarked INR 320 Cr for advertising, brand promotion, and marketing to strengthen consumer awareness and demand for affordable eyewear across India and Asia.
The IPO proceeds will also be used for potential inorganic acquisitions to accelerate growth and market reach. In line with this strategy, LensKart has already made an acquisition of Stellio Ventures S.L., the owner of the "Meller" eyewear brand.
LensKart, an omnichannel eyewear retailer, swung to a profit of INR 297.3 Cr in FY25, compared to a loss of INR 10 Cr in the previous fiscal. With these strategic investments, LensKart is poised to continue its growth in the highly competitive eyewear retail sector.
[1] Business Standard - LensKart's IPO Proceeds: Where the Funds are Headed [2] Economic Times - LensKart's IPO: What to Expect and Why it Matters [3] LiveMint - LensKart's IPO: A Deep Dive into the Company's Growth Plans and Financials [4] Financial Express - LensKart's IPO: What it Means for the Eyewear Retail Sector and Investors
With the proceeds from its IPO, LensKart intends to invest in various business areas including capital expenditure, technology investment, advertising, inorganic acquisitions, lease and rental expenses, and general corporate purposes. The company's founder, Peyush Bansal, aims to expand LensKart's physical retail presence, upgrade technology systems, strengthen consumer awareness, and accelerate growth through potential acquisitions.
