Lenskart IPO could make founder Peyush Bansal a billionaire
What's the story
Peyush Bansal, the co-founder and CEO of eyewear brand Lenskart, is on the verge of becoming a billionaire. The company is gearing up for its initial public offering (IPO) in Mumbai as early as next month. The stock debut could value Lenskart at $9 billion based on the IPO size, according to Bloomberg.
Wealth projection
Bansal's potential windfall
Bansal, who co-founded Lenskart over 15 years ago with partners he met on LinkedIn, is likely to own a stake worth nearly $800 million after selling a small portion of his shares in the IPO. However, if Lenskart shares rise by about 25% on debut, his stock could be worth over $1 billion. This potential windfall highlights the return of investor confidence in founder-led businesses after a funding drought.
Growth strategy
Robotic production and Southeast Asia expansion
Lenskart has differentiated itself with robotic production in India, using machines imported from Germany to make glasses. The company also offers an easy-to-use website for customers to order and try their purchases at home. With a huge domestic market, Lenskart is now expanding into Southeast Asia as demand patterns in Indonesia and Vietnam are similar to what India witnessed a decade ago.
Business success
Lenskart's financials and Bansal's personal interests
Lenskart, which designs, manufactures, and sells eyewear online and offline, posted its first-ever full-year profit in the year ending March 31. Bansal is also a judge on Shark Tank India and has over 900,000 Instagram followers. He believes that timing and persistence have helped him in business. Despite facing a stock debut affected by trade wars and geopolitical tensions this year, Bansal remains optimistic about his company's future prospects.
Market response
IPO market rebound and China dependence
The upcoming IPO will test if the rebound in investor appetite for Indian consumer-technology stocks is here to stay. This comes after Urban Company's stellar debut last month, which saw shares of the rent-a-service marketplace soar 62% on opening day. However, Lenskart still relies on China for over a third of its purchases, including frames, molds, and raw materials. Bansal acknowledges this dependence but calls it manageable.
Expansion strategy
Lenskart's plans for the future
Lenskart intends to use the proceeds from its share sale to open new stores across India, invest in technology and AI capabilities, make acquisitions, and fund general corporate purposes. As of March, it had 2,723 stores in India and abroad. Nearly 40% of its revenue now comes from outside India. The company's next big bet is smart eyewear with a dedicated team working on integrating features like UPI payments, AI tools, cameras, and headphones.