Lenskart transitions to public company ahead of $1B IPO
What's the story
Leading omnichannel eyewear brand, Lenskart, has officially transitioned into a public company. The development comes as part of the firm's preparation for an upcoming Initial Public Offering (IPO). The company has changed its registered name from Lenskart Solutions Private Limited to Lenskart Solutions Limited. This was done through a special resolution approved by its shareholders.
Financial strategy
Lenskart is looking to raise $1 billion for its IPO
Lenskart is looking to raise $1 billion through a combination of primary and secondary capital. The company is eyeing a valuation of $10 billion for its IPO, which would be double the valuation from its last funding round. In June 2024, Lenskart raised $200 million in a secondary funding round at a valuation of $5 billion with contributions from Singapore's sovereign fund Temasek and US financial services giant Fidelity.
Business growth
Strong annual revenue run rate of $1 billion
Lenskart has a strong annual revenue run rate of $1 billion (about ₹8,400 crore). The company manufactures 25 million frames and 30-40 million lenses every year. It has over 2,500 stores across India and Southeast Asia, while also maintaining a strong online presence. In FY24, Lenskart's operating revenue jumped by 43% to ₹5,428 crore from ₹3,788 crore in FY23.
Financial efficiency
Losses reduced by 84% in FY24
Lenskart has also managed to reduce its losses by 84% in FY24 to ₹10 crore from ₹64 crore in the previous fiscal year, FY23. The company credited this to technology-driven improvements in operational efficiency. The company's international operations accounted for 42% of its revenue in FY24, with markets such as Japan, Singapore, Taiwan, and Thailand contributing significantly.