Lenskart eyes valuation of over $8B in upcoming IPO
What's the story
SoftBank-backed eyewear start-up Lenskart has filed with the Ministry of Corporate Affairs (MCA) to raise ₹2,150 crore via a fresh issue of shares. The company is likely to file its Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) in the near future, sources told CNBC-TV18. Lenskart is eyeing a valuation of over $8 billion.
Financial performance
Lenskart to end FY25 with $755M revenue
Lenskart is projected to end FY25 with revenues of $755 million (nearly ₹6,415 crore). The figure marks a 17% year-on-year growth, which is a slowdown from the 46% growth it saw between FY23 and FY24. In FY23, the firm reported revenues of $443 million, which rose to $645 million in FY24.
Global footprint
Majority of revenue from India
The majority of Lenskart's FY25 revenue came from India, but its international business is growing rapidly. The firm earned $455 million (₹3,865 crore) in India, and $300 million (₹2,550 crore) from overseas markets, especially Southeast Asia. This includes a $400 million acquisition of Japanese eyewear chain Owndays in 2022, and a manufacturing joint venture in China.
Business outlook
Healthy EBITDA margins of 18-22% in FY25
Since FY23, around 60% of Lenskart's revenues have come from India, with the rest coming from its expanding international business. The company's internal presentation showed healthy EBITDA margins of 18-22% in FY25, and a gross margin of 70%, aided by a favorable cost structure. As of H1 FY25, Lenskart had around $200 million (₹1,700 crore) in net cash.