Lenskart IPO: SoftBank-backed company plans to file DRHP for $1 billion IPO this week

Indian eyewear retail major Lenskart, backed by marquee investors including SoftBank and Temasek, is expected to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) this week, aiming to launch an initial public offering (IPO) worth around $1 billion (approx. ₹8,300 crore).

This move marks one of the most anticipated IPOs in India's consumer tech sector in recent times and highlights growing investor confidence in profitable direct-to-consumer (D2C) startups amid a renewed bullish sentiment in equity markets.

Inside the IPO Plan

According to sources familiar with the matter, the public issue will include both fresh issuance of shares and an Offer for Sale (OFS) component by existing investors. SoftBank, which owns a significant minority stake, is expected to offload a portion of its holdings. Other investors like KKR, Temasek, and ChrysCapital may also explore partial exits.

The funds raised through the fresh issue are likely to be deployed toward expanding Lenskart’s manufacturing and supply chain infrastructure, enhancing tech capabilities, marketing, and global expansion, especially in the Middle East and Southeast Asia.

Strategic Timing Amid Market Optimism

Lenskart’s IPO plan comes at a time when Indian stock markets are hovering near all-time highs. Analysts see this as an opportune moment to tap into the robust retail participation and heightened interest in consumer-tech IPOs.

“Lenskart has shown a clear path to profitability and scaled operations efficiently, both offline and online,” said Rajat Agarwal, Consumer Internet Analyst at Motilal Oswal. “With the IPO, they can further solidify their market leadership in India and push global ambitions.”

India’s IPO market has seen strong momentum in 2025, with over ₹65,000 crore raised so far this year across tech, manufacturing, and fintech sectors.

Lenskart's Growth Journey

Founded in 2010 by Peyush Bansal, Lenskart has transformed from an online-only eyewear portal to an omnichannel retail powerhouse. As of June 2025, it operates over 2,500 stores across India and international markets, including the UAE, Singapore, and Saudi Arabia.

The company serves more than 20 million customers and claims to ship over 300,000 eyewear units monthly. Backed by advanced tech infrastructure and in-house lens manufacturing units, Lenskart has also invested in robotics and AI to improve supply chain efficiency and customizations.

Financials and Valuation

While the final DRHP will detail exact numbers, industry insiders estimate Lenskart’s FY25 revenue to have crossed ₹3,800 crore, with EBITDA margins exceeding 12% — signaling sustainable profitability.

The IPO is expected to value the company in the range of $4.5–5 billion, up from its last private funding valuation of $4 billion in 2023. SoftBank Vision Fund, one of its early backers, had invested around $275 million in 2019.

Investor Sentiment and Analyst Views

Analysts believe Lenskart’s IPO could mirror the success of Nykaa or Zomato, albeit with a stronger profit trajectory. Its differentiated business model, vertically integrated operations, and clear brand identity offer resilience against e-commerce volatility.

“Unlike many tech IPOs of the past, Lenskart comes with operational maturity and real-world retail experience. Investors are more likely to reward such a company, especially in an inflation-hedged product category like eyewear,” said Anuja Mehta, Partner at Chrysalis Investment Advisors.

However, she noted that valuation expectations must remain reasonable. “Investors are still wary of frothy pricing, even for good companies.”

Challenges Ahead

Despite its strengths, Lenskart faces stiff competition from both organized and unorganized eyewear players in India. New-age competitors like Titan EyePlus and global players entering India through e-commerce platforms pose a challenge.

Further, while its global expansion has been promising, sustained profitability from international markets is yet to be proven. Currency risks and regulatory frameworks in foreign territories may also impact growth.

What This Means for Indian IPO Landscape

Lenskart’s $1 billion IPO will not only be a milestone for the company but also a litmus test for India's evolving D2C startup ecosystem. A successful listing could reignite interest in consumer internet plays, many of which have delayed listings amid market volatility over the past two years.

“If Lenskart can pull this off at the desired valuation, it will set the tone for others like Mamaearth, Boat, and Purplle to reattempt listings,” said Kunal Chawla, Head of Investment Banking at Avendus Capital.

Investor Outlook: Long-Term Play

For long-term investors, Lenskart represents a rare blend of profitability, scale, and brand loyalty. As the company looks to deepen penetration in Tier II and III cities and expand its B2B optical business (via Lenskart Plus), its revenue streams are likely to diversify further.

The company's digital assets — including its AI-driven vision check tools and subscription-based offerings — also provide potential for recurring revenue models, a key factor in future valuation growth.

As Lenskart gears up to file its DRHP this week, market watchers are eagerly anticipating the finer details. With a compelling business model and a proven growth record, the IPO could emerge as one of the most sought-after issues in 2025. However, investor discipline on valuation and expectations will be key in determining its listing success.