In a bold move ahead of Lenskart’s much-anticipated IPO, co-founder and CEO Peyush Bansal is reportedly in talks to raise a loan of ₹200 crore to increase his stake in the company. According to sources, Bansal is negotiating to buy shares from existing investors—including SoftBank, Chiratae Ventures, and TR Capital—at a valuation of $1 billion (₹8,500 crore), a tenth of the eyewear giant’s expected public market valuation of $10 billion.
This strategic maneuver is not only financially savvy but also symbolic, signaling Bansal’s strong belief in the long-term potential of the company he co-founded over a decade ago.
Buying Back Into 2019
If the deal materializes, it would effectively peg Lenskart’s valuation back to its 2019 levels—a dramatic markdown from its recent benchmarks. Just in June 2024, Temasek and Fidelity invested $200 million in Lenskart at a $5 billion valuation in a series of secondary transactions. Now, Bansal is aiming to purchase shares at an 80% discount to that figure.
This move highlights an important trend among Indian startup founders: regaining control and reinforcing their stake before going public. Similar pre-IPO buybacks have been witnessed from Swiggy’s Sriharsha Majety and FirstCry’s Supam Maheshwari.
Aiming for 6% Ownership
Bansal currently holds about 4% equity in Lenskart and is now looking to raise that by two percentage points, taking his total direct ownership to 6%. In addition, he controls a portion of the company’s ESOP pool, which comprises roughly 19% of the total cap table, as per private market data provider Tracxn.
This calculated increase, funded via a personal loan, shows a deep level of commitment. With a public listing on the horizon, it’s a clear vote of confidence from the man who helped steer Lenskart from a modest startup to a global eyewear player.
The Road to a $10 Billion IPO
Lenskart is preparing to file its Draft Red Herring Prospectus (DRHP) in the coming weeks. The eyewear retailer is looking to raise $1 billion through its IPO at a projected valuation of $10 billion (₹85,000 crore). Investment banks Kotak, Axis Capital, Citi, Morgan Stanley, and Avendus are advising on the issue.
If successful, this would be one of the largest IPOs in India’s consumer internet space and a defining moment for D2C retail brands in the country.
From Startup Darling to Global Contender
Founded by Peyush and Neha Bansal along with Amit Chaudhary, Ramneek Khurana, and Sumeet Kapahi, Lenskart has grown into a formidable player in the global eyewear industry. Today, it operates across India, the UAE, Singapore, and Japan. The company has raised over $1 billion from top-tier investors like ADIA, ChrysCapital, SoftBank, Alpha Wave, and others.
Despite previously achieving profitability, Lenskart has posted recent losses as it accelerates its global expansion. In FY24, it reported revenues of ₹5,427 crore and a minor loss of ₹10 crore. Its FY25 numbers are still awaited.
Founder Conviction Amid Investor Exit
Interestingly, this move by Bansal comes at a time when many existing investors are partially exiting. But instead of worrying, Bansal appears to be doubling down. Buying back equity at a low valuation not only strengthens his financial position post-IPO but also shows that he’s ready to lead Lenskart into its next phase with greater skin in the game.
In a market where founder-led conviction increasingly sways public sentiment, this could prove to be a smart—and strategic—move.
Credits: Moneycontrol
Conclusion
As Lenskart gears up for its IPO, Peyush Bansal’s decision to take on debt and increase his stake is more than a financial strategy—it’s a signal. A signal of belief, commitment, and confidence in the future of a company that aims to redefine eyewear globally. Whether investors follow his lead remains to be seen, but the message is loud and clear: the founder is all in.
