ETtech explainer: Decoding Lenskart’s draft prospectus for Rs 8,000 crore IPO – The Economic Times

Omnichannel eyewear retailer Lenskart on Tuesday filed a draft crimson herring prospectus (DRHP) for its initial public offering (IPO) with market regulator Securities and Trade Board of India (Sebi), seeking to raise Rs 2,150 crore in contemporary capital.

Lenskart’s IPO would be the greatest amongst new-age firms — others embrace Groww, Meesho and PhysicsWallah — going public this 12 months. Nonetheless, in contrast to the opposite firms, Lenskart has not opted for a confidential submitting course of. As an alternative, it has filed a 761-page lengthy DRHP.

Merely put, the DRHP is the preliminary registration doc ready by service provider bankers for potential IPO-making firms. This doc usually accommodates details about the corporate, its enterprise operations, promoters, financials, merchandise, and extra to make sure its potential retail traders make an knowledgeable choice.

ETtech takes you thru the small print of Lenskart’s DRHP.

Additionally Learn: Lenskart IPO: Founder Peyush Bansal buys back company shares at steep discount ahead of going public

Firm snapshot

Based by Peyush Bansal in 2010, Lenskart has immediately change into India’s greatest eyewear retailer, with a web based in addition to an offline presence. Amit Chaudhary and Sumeet Kapahi are the opposite cofounders.

The corporate primarily sells prescription eyeglasses and sun shades and different merchandise reminiscent of contact lenses and eyewear equipment. The merchandise are offered beneath a number of sub-brands, together with Vincent Chase and John Jacobs.

In addition to India, Lenskart’s key working markets embrace Southeast Asia, Japan, and the Center East

Lenskart has manufacturing amenities at two areas in India in addition to in Singapore and the United Arab Emirates.

The DRHP additionally revealed that the eyewear firm has acquired an 80% stake in Spanish fashion eyewear brand Meller by its Singapore-based subsidiary, as a part of a strategic growth into Europe and Gen Z-focused product traces.

Lenskart paid Rs 406.93 crore (approx €41.5 million) for the stake in Stellio Ventures S.L., which owns the Meller model, as per a share buy settlement dated July 12, 2025.

IPO valuation

In response to the DRHP, Lenskart’s IPO will comprise a contemporary difficulty of shares value Rs 2,150 crore and an offer-for-sale (OFS) of as much as 132.3 million shares by current traders. The promoting shareholders embrace SoftBank, Alpha Wave and Kedaara Capital.

Lenskart is aiming for a Rs 7,500–8,000 crore ($850–900 million) IPO — making it among the many greatest public choices this 12 months after the likes of Tata Capital and LG Electronics — in keeping with folks briefed on the matter.

The corporate is focusing on a valuation of Rs 70,000-75,000 crore ($8-9 billion), one of many individuals instructed ET, talking on situation of anonymity, including that these figures may change on the time of itemizing, relying on market situations.

Fund utilisation

Lenkart has mentioned within the DRHP that it plans to utilise the online proceeds of the IPO as follows:

• It’ll use Rs 272 crore to arrange new firm owned and firm operated shops in India.
• It’ll use Rs 591 crore from the contemporary capital to fulfill leasing, rental and different bills for its current retailer footprint. At present, Lenskart has over 2,700 shops throughout all its geographies.
• It’ll use Rs 213 crore to reinforce its know-how and cloud infrastructure.
• It’ll use Rs 320 crore for model advertising and enterprise promotion

Lenskart financials

In response to the DRHP, Lenskart turned worthwhile within the monetary 12 months that ended March 31, 2025. It reported a internet revenue of Rs 297 crore in FY25 towards a internet lack of Rs 10 crore reported the 12 months earlier than. In FY23, it reported a internet lack of Rs 64 crore.

Lenskart’s income throughout FY25 elevated 22% to Rs 6,625 crore, from Rs 5,428 crore in FY24. In the meantime, its listed rival Titan EyeCare reported a ten% improve in its income for FY25, at Rs 796 crore.

Over 40% of Lenkart’s whole income for FY25 got here from worldwide markets, together with Taiwan, Australia, Japan, South Korea, Thailand and the Center East. The corporate’s standalone worldwide income rose 17% to Rs 2,638 crore in FY25 from Rs 2,265 crore in fiscal 12 months 2024.

Complete bills rose to Rs 6,619 crore in FY25 from 5,549 crore in FY24, led by uncooked materials prices and worker advantages.