IPO Note : Lenskart Solutions Ltd by Motilal Oswal Wealth Management
India’s largest and fastest-growing Omni Channel Eyewear Platform:
Lenskart is India’s leading eyewear retailer offering a fully integrated omni-channel experience across online, mobile, and 2,500+ stores globally. With ~27m eyewear sold in FY25, it commands a dominant position in the vastly underpenetrated Indian eyewear market, where ~777m people need vision correction—expected to rise to ~943m by FY30. The company has set an ambitious goal to provide vision access to 1bn people, including 500m from underprivileged segments.
Transforming Access through Tech-Led Eye Testing:
Addressing India’s acute shortage of optometrists (~30–35 per million people), Lenskart pioneered remote eye testing, enabling optometrists in one city to serve customers nationwide. This innovation enhanced productivity from ~10– 15 to ~35–40 tests daily, with 500+ stores already enabled for remote check-ups. Lenskart conducted ~16m eye tests in FY25 and targets 100m annually, complemented by self-eye test tools in markets like Japan
Strong Store Economics Driving Expansion:
Lenskart’s compact 800 sqft stores generate ~Rs.1.5 mn monthly revenue with ~33% margins and <1- year payback (~10 months vs. 12–13 earlier). Strong unit economics and massive market under-penetration (~60 eyewear stores/mn vs. 1,200 jewelry) enable sustained expansion.
Global Expansion & Premium Brand Strategy :
Internationally, Lenskart operates 60+ stores across Singapore, Middle East, and Japan (via Owndays acquisition), tapping into regions with equally high refractive error prevalence. Global product margins are higher (~76% vs. ~63% in India). Its House of Brands approach—Vincent Chase, John Jacobs, Owndays, Hooper, and Hustlr—caters to diverse price segments, supported by fashion collaborations with Harry Potter and Swarovski.
Issue Size and Objects:
The Rs.73 bn IPO comprises a fresh issue and OFS. Proceeds will fund new CoCo stores, technology upgrades and brand marketing. Post-issue, the promoter group stake will reduce to 17.5%.
Valuation & View:
Lenskart’s tech-led, integrated model, strong unit economics, and vast market opportunity drove sustained growth and margin expansion. Its brand strength, supply-chain integration, datadriven expansion, and remote eye-testing creates high entry barriers and visibility.Thus it’s niche, robust and scalable business model justifies the premium valuation. We recommend ‘Subscribe’ to the issue.
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