India’s eyewear giant Lenskart is gaining some powerful backers ahead of its much-anticipated initial public offering (IPO). Billionaire investor Radhakishan Damani, founder of Avenue Supermarts (DMart), and SBI Mutual Fund are each expected to invest around ₹100 crore in the company, according to sources. The move highlights the growing confidence marquee investors have in one of India’s most successful digital-first consumer brands.
Credits: Inc 42
A Pre-IPO Power Move
The investments from Damani and SBI Mutual Fund will reportedly take place through a secondary share purchase, meaning the funds will go to existing shareholders rather than the company itself. The timing is strategic—coming just before Lenskart’s IPO, which recently received clearance from SEBI.
The upcoming IPO is set to include a fresh issue of ₹2,150 crore and an offer for sale (OFS) of about 13.2 crore shares by current investors. This dual structure will allow Lenskart to both raise fresh capital for expansion and offer liquidity to early backers such as SoftBank, Temasek, and KKR.
Why Top Investors Are Taking Notice
The interest from Damani and SBI MF isn’t just about riding the IPO wave—it signals a deeper faith in India’s maturing digital consumer ecosystem. For SBI Mutual Fund, this marks its second major bet on a new-age internet company, following its investment in Urban Company earlier this year.
Meanwhile, Damani’s involvement adds the imprimatur of one of India’s most respected value investors. Known for his long-term, fundamentals-first investment style, Damani’s decision to back Lenskart underscores his confidence in its profitability, scale, and brand strength.
“Having both institutional and veteran investors come on board at this stage reinforces the market’s belief that Lenskart is among the rare breed of internet-led firms that have cracked the profitability code,” said a person aware of the deal.
Lenskart’s Soaring Valuation
According to a portfolio update by US-based Fidelity dated April 30, Lenskart is now valued at $6.1 billion—a 22% jump from the $5 billion valuation during its June 2024 secondary round. The steady upward trajectory in its valuation reflects investor optimism around both its domestic dominance and its growing international footprint.
At this valuation, Lenskart stands shoulder to shoulder with India’s top consumer-tech unicorns like Zepto and Boat, carving out a unique niche in a sector that combines fashion, healthcare, and technology.
A Financial Turnaround Story
If there’s one reason Lenskart is attracting this kind of capital, it’s performance. In FY25, the company posted a net profit of ₹297 crore, a massive turnaround from a ₹10 crore loss in FY24. Its revenues rose 23% year-on-year to ₹6,652 crore, while gross margins improved by 500 basis points to 69%.
Analysts attribute this to Lenskart’s vertically integrated supply chain, which allows the company to control everything—from manufacturing and logistics to retail pricing. Combined with its omnichannel model—balancing offline showrooms with a seamless online experience—Lenskart has managed to stay ahead in a largely underpenetrated eyewear market.
IPO Plans and Future Growth
The proceeds from the fresh issue will be channeled into expanding company-owned stores, upgrading technology infrastructure, marketing, and strategic acquisitions. With over 2,000 stores in India and 650 outlets overseas, Lenskart is now present across Southeast Asia and the Middle East.
Its goal is to strengthen its position as a global eyewear powerhouse, while maintaining profitability—a balance few consumer-tech firms have achieved. The company’s omnichannel strategy continues to be its biggest differentiator, letting customers switch effortlessly between online browsing and offline purchases.
Credits: ScanX
The Bigger Picture
For India’s markets, the upcoming Lenskart IPO will be closely watched—not just for its size, but for what it represents. If successful, it could set the tone for the next wave of profitable internet listings, following in the footsteps of Zomato and Mamaearth.
With Damani’s seal of approval and SBI Mutual Fund’s institutional backing, Lenskart is stepping into the public markets with strong momentum and even stronger credibility. As the company gears up for its next chapter, all eyes—quite fittingly—are on Lenskart.
