Lenskart Solutions
- Lenskart Solutions is coming out with a 100% book building; initial public offering (IPO) of 18,38,65,848 shares of Rs 2 each in a price band Rs 382-402 per equity share.
- Not more than 75% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 10% for the retail investors.
- The issue will open for subscription on October 31, 2025 and will close on November 4, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 2 and is priced 191.00 times of its face value on the lower side and 201.00 times on the higher side.
- Book running lead managers to the issue are Kotak Mahindra Capital Company, Morgan Stanley India Company, Avendus Capital, Citigroup Global Markets India, Axis Capital and Intensive Fiscal Services.
- Compliance Officer for the issue is Preeti Gupta.
Profile of the company
Lenskart Solutions is a technology-driven eyewear company with integrated operations spanning designing, manufacturing, branding and retailing of eyewear products. It primarily sells prescription eyeglasses, sunglasses, and other products such as contact lenses and eyewear accessories. India is its largest market and it is the largest seller of prescription eyeglasses in terms of volumes sold in India in Financial Year 2025, among organized retailers. Leveraging its experience and capabilities in India, it has expanded into select international markets including Japan, Southeast Asia and the Middle East. It is India’s largest, and in Asia, is amongst the two largest, organized retailers of prescription eyeglasses in terms of B2C eyeglasses sales volumes during the Financial Year 2025.
The company is a direct-to-consumer company that designs and sells a wide range of eyewear products under its own brands and subbrands. It designs its eyeglasses, both frames and lenses, supported by its 109-member design and merchandising team, as of June 30, 2025. It offers products across a wide range of price points and age categories, catering to the requirements of an entire household. During the three months ended June 30, 2025 and the Financial Year 2025, it launched 42 and 105 new in-house designed and engineered collections globally, respectively, including in collaboration with popular brands and celebrities. The two-year purchase frequency among new customer accounts acquired by it in the Financial Year 2023 was 3.62 eyeglasses as compared to an India average of 1.8 eyeglasses.
The company’s brands are designed to be aspirational and appeal to a wide range of customer categories. In the Financial Year 2025, Lenskart was awarded “India’s Most Trusted Eyewear Brand of 2025” by TRA Research. It offers its customers a convenient purchase journey through its omnichannel retail network. As of June 30, 2025, its mobile applications had over 100 million cumulative downloads and it operated its business through 2,806 stores globally (comprising 2,137 stores in India and 669 stores internationally).
Proceed is being used for:
- Capital expenditure towards set-up of new CoCo stores in India
- Expenditure for lease/rent/license agreements related payments for its CoCo stores operated by the company in India
- Investing in technology and cloud infrastructure
- Brand marketing and business promotion expenses for enhancing brand awareness
- Unidentified inorganic acquisitions and general corporate purposes
Industry Overview
The global eyewear market is large and steadily growing, driven by the increasing incidence of refractive errors, increasing awareness and access driving penetration of prescription eyeglasses with rising disposable incomes, and evolving consumer preferences. This growth has been complemented by a rapid shift from unorganised to organised retailers in the eyewear market across geographies. As of FY 2025, the global eyewear market is estimated at Rs 15,207 billion ($177 billion) and is projected to grow at a CAGR of 4% to reach Rs 18,657 billion ($217 billion) by FY 2030P. The eyewear market opportunity in Asia alone is sized at Rs 4,700-5,600 billion ($55-65 billion) as of FY 2025 and is projected to increase to Rs 6,000-7,800 billion ($70-90 billion) by FY 2030P, growing at a CAGR of 6-8%. Prescription eyeglasses account for 70% of the global eyewear market as of FY 2025, driven by their dual relevance across healthcare and lifestyle and rising penetration.
With a CAGR of 13% between FY 2025 and FY 2030P, the eyewear market in India is projected to expand at 1.5x the rate of the overall retail market in India and 3x faster than global eyewear market during the same period and projected to reach Rs 1,483 billion ($17.2 billion) by FY 2030P, from Rs 788 billion ($9.2 billion) in FY 2025. Prescription eyeglasses constitute the largest category at 73% of this market in value terms, followed by sunglasses and contact lenses. Increasing prevalence of refractive errors, especially myopia, among teenagers and children is being driven by a combination of behavioural and lifestyle factors. Academic pressure and irregular sleep patterns also play a role in straining eye health. While the overall prevalence of refractive error grew from 43% of the population in FY 2020 to 53% of the population in FY 2025, it grew much faster among children from 21% of the population in FY 2020 to 39% of the population in FY 2025 and is projected to reach 54% of the population by FY 2030P - more than doubling over the current decade.
The prescription eyeglasses market in India has exhibited a wide range of price points, with organised incumbents commanding a premium over unorganised alternatives and providing consistent quality, wider assortments, and enhanced service. While the unorganised channel remains relatively inexpensive, it often leads to lower customer satisfaction owing to instances of inconsistent quality due to lack of durability, long delivery timelines due to fragmented supply chain, narrow product assortment, lack of trained optometrists, limited use of technology and the absence of after-sales service. This has created a whitespace for value-focused offerings by direct-to-consumer players to capture, as consumers increasingly demand reliability, affordability, and a more seamless shopping experience. As a result, these players are investing in improved product design, wider and trendier assortment, after-sales support, and omnichannel models, making organised retail increasingly attractive across consumer groups. Direct-to-consumer (D2C) brands’ share of prescription eyeglasses market (in value terms) has grown from 6-8% of the prescription eyeglasses market in FY 2020 to 11-13% in FY 2025, growing at a CAGR of 25-30%. This is further projected to grow at a CAGR of 22-28% to reach 17-22% of the market by FY 2030P.
Pros and strengths
Centralized supply chain and manufacturing processes: The company’s centralized prescription eyeglasses supply chain and manufacturing allows it to manage its supply chain operations and address customer demand for each store location. This drives its core proposition of providing better accessibility to quality eyewear products at affordable prices to a large number of customers, by enabling faster delivery for a large selection of SKUs and thereby eyewear as a ‘fast fashion’ category. This has allowed it to remove the inefficiencies in traditional store led eyewear retailing model. By moving most of the complexity in eyewear retail to a centralized manufacturing source, it has been able to achieve scale and accessibility, consistent quality, lower cost, faster delivery while providing a large selection of eyewear products with ‘fast fashion’.
Frame and lens engineering and manufacturing capabilities: For the last few years, it has been developing in-house capabilities for the manufacturing of frames, which allows it to improve its materials and processes, design its own styles with attributes catering to specific customer trends and requirements. In addition, its in-house supply chain reduces dependency on external suppliers and improves quality and cost control. It manufactures complex lens types, including progressive, bifocal lenses and selectively, single vision lenses, in-house, which allows it to focus on innovations in materials, coatings and processes to enhance product quality, reduce manufacturing lead times, and lower costs as compared to sourcing such lenses from third-party suppliers. In addition, the company has focused on lens research and development to better meet diverse customer requirements across geographies.
Direct-to-consumer model: The company operates a direct-to-consumer model that eliminates multiple layers of intermediaries in the traditional prescription eyeglasses supply chain, enabling it to deliver products to customers at an affordable cost and with next day delivery. This model also allows it to retain end-to-end control over quality, reduce manufacturing lead times and achieve greater cost efficiency compared to conventional eyewear retailers. The company manufactured the third largest number of prescription eyeglasses globally among leading large organized retailers of prescription eyeglasses in Financial Year 2025.
Customer-focused product design capabilities: The company has developed holistic design and merchandising capabilities, including in-house designs, structural configurations, and frame moulds, which it uses to manufacture frames in-house. This has enabled it to exercise greater design innovation to meet customer requirements and drive purchasing frequency. The company has increased new product development, expanding from a limited number of launches annually to 105 new in-house designed and engineered collections across its markets during the Financial Year 2025. As of June 30, 2025, its design and merchandising team comprised 109 members across its markets, focused on creating new collections.
Risks and concerns
Depends significantly on sales of its eyewear products to Lenskart Gold members in India: Lenskart Gold is the company’s membership program that offers customers in India several benefits, such as “buy one get one free” offers, discounts, free shipping, early access to new collections and exclusive deals. Lenskart Gold includes multiple tiers. The Lenskart Gold membership program enhances its customer value proposition and strengthens its brand loyalty and differentiation in the eyewear industry. Any decline in the size or engagement of this membership base could result in lower revenues, reduced profitability, and decreased customer retention. There can be no assurance that it will be able to retain existing members or attract new customers to its Lenskart Gold program. Any failure to do so could adversely affect its business, financial condition, results of operations, and cash flows.
Geographical constrain: The company operates a hub-and-spoke model for manufacturing, where almost all single-vision, bifocal and progressive lenses (excluding lenses manufactured at its international facilities) are cut, edged, coated and matched to frames at its two manufacturing facilities located at Bhiwadi, Rajasthan and Gurugram, Haryana within the broader Gurugram industrial cluster across the states of Haryana and Rajasthan, following which finished eyeglasses are dispatched to its stores and e-commerce fulfilment centres across India and to overseas jurisdictions. This exposes the company to concentration risks across production and logistics, which could adversely affect its business, results of operations, financial condition and cash flows.
Business is subject to seasonality: The company’s business is subject to seasonal fluctuations in demand for its eyewear products, which may affect its revenue, profitability and cash flows. It typically experiences higher sales volumes during the festive season in the fourth quarter of the Financial Year. Conversely, it may experience lower sales volumes during the third quarter of the Financial Year, as well as during periods of economic slowdown, adverse weather conditions, public health emergencies or other factors that may affect customer spending and preferences. As a result, its quarterly results published upon listing may not be indicative of its annual financial performance and results of operations, and may vary significantly from quarter to quarter. Therefore, investors should not rely on its quarterly results as an indication of its future performance, and should consider its annual results and the factors that may cause fluctuations in its results.
Does not exercise full operational or financial control over franchisee-operated retail stores: The company does not exercise complete operational or financial control over its franchisee-operated retail stores. As a result, franchisees may take actions that are inconsistent with its brand standards, operational policies, or strategic objectives. Any such actions could adversely affect its reputation, customer experience, and, consequently, its business, results of operations, financial condition, and cash flows.
Outlook
Lenskart Solutions is a technology-focused eyewear company involved in the design, manufacturing, branding, and retail of prescription eyeglasses, sunglasses, contact lenses, and accessories. As of March 31, 2025, Lenskart operated 2,723 stores globally -- 2,067 in India and 656 overseas with 1,757 owned and 310 franchised stores in India. The company has Technology-led operations and retail experience coupled with Omni-channel retail presence. On the concern side, the company’s reliance on manufacturing facilities located in the Gurugram industrial cluster across the states of Haryana and Rajasthan (which are its Bhiwadi and Gurugram facilities) exposes it to concentration risks across production and logistics, which could adversely affect its business, results of operations, financial condition and cash flows. Moreover, the company is dependent significantly on sales of its eyewear products to its Lenskart Gold members in India. Any failure to retain such customers could lead to a decline in the sales of its products, which could have an adverse effect on its business, results of operations, financial condition and cash flows.
The issue has been offering 18,38,65,848 shares in a price band of Rs 382-402 per equity share. The aggregate size of the offer is around Rs 7023.68 crore to Rs 7391.41 crore based on lower and upper price band respectively. Minimum application is to be made for 37 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by 22.57% to Rs 66,525.17 million for the Financial Year 2025 from Rs 54,277.03 million for the Financial Year 2024. Moreover, the company reported a restated profit for the year of Rs 2,973.40 million for the Financial Year 2025, compared to a restated loss for the year of Rs 101.54 million for the Financial Year 2024.
As part of its long-term strategy, the company is focused on progressively reducing its dependence on imported raw materials and frames by deepening its manufacturing presence in India. Its direct imports from the PRC decreased from 54.15% of its total purchases (Rs 8,682.22 million) in Financial Year 2023 to 42.21% of total purchases (aggregating to Rs 10,624.33 million) in Financial Year 2025. The company commenced manufacturing operations in India in 2021 and manufactured 69.87% of prescription eyeglasses sold by it during Financial Year 2025 at its centralized manufacturing facilities in India. It has also expanded its prescription eyeglasses manufacturing capacity in India, with its Bhiwadi facility’s annual installed capacity. Further, it is in the process of setting up a facility in Hyderabad (Telangana) for which it entered into a memorandum of understanding in December 2024 with the Government of Telangana. This facility will be significantly larger than its existing 10.69 acre Bhiwadi facility, and is intended to support its growing demand in India and internationally, and create redundancy for any potential risks to its existing facilities and mitigating manufacturing-related risks.
