The public issues that are most expected in India, and that are Lenskart and Groww, have torn up the major market this week.

Both companies are pioneers in their fields Lenskart is in the eyewear retail business, and Groww is in the online investment platform, and both represent the rising consumer-tech success story of India.

But with investors queuing up to apply to such high-profile IPOs, there is one question that is on the top of the list:

Lenskart vs Groww IPO: Which One Is the Better Investment?

We shall dissect their businesses, valuations, strengths, and risks to enable investors to make an informed decision.

IPO Lenskart Vision Beyond Eyewear IPO

Business Overview

Lenskart, which was co-founded in 2010 by Peyush Bansal, has reinvented the eyewear sector in India with its omnichannel business model, with a robust online presence plus more than 2,500 brick-and-mortar retail businesses spread throughout India and Southeast Asia.

The company markets spectacles, sunglasses, and contact lenses and even has its in-house manufacturing and lens plants.

Lenskart enjoys global investor support with SoftBank, KKR, and Temasek supporting the company to establish a premium and vertically integrated business model.

Key Financials (as per DRHP)

• FY2024 Revenue: ₹3,400 crore

• Net Profit: 270 crore (compared to 150 crore in FY2023)

• EBITDA Margin: 18–20%

• Valuation Range: ₹40,000–₹45,000 crore

• IPO Size: Approximately million dollars (OFs and fresh issue)

Strengths

• Omnichannel presence: Online and offline growth in 175 cities.

• Good brand recognition: Good awareness due to celebrity endorsement and online marketing.

• International presence: Entering the Middle East and Southeast Asia.

• Large gross margins: It has in-house production and a direct-to-consumer model.

Risks

• Large marketing expenses and competition by Titan Eye+, EyeMyEye and others.

• Premium pricing can restrain listing profits.

• It is reliant on discretionary spending, which may vary during poor consumer demand periods.

 Groww IPO: Wagering on India’s Retail Investment Boom.

Business Overview

Groww was founded by Lalit Keshre, Ishan Bansal, Harsh Jain, and Neeraj Singh in 2016 as one of the most reliable online investment platforms in India, allowing users to invest in mutual funds, stocks, ETFs, and IPOs on the platform using a smooth and mobile-based platform.

Groww currently ranks as one of the 3 best investment platforms in India, along with Zerodha and Upstox with more than 6 crore registered users.

It has made investments on a democratic platform by penetrating Tier-2 and Tier-3 cities – a significant strength in the retail investor revolution in India.

Key Financials (as per DRHP)

• FY2024 Revenue: ₹2,250 crore

• Net Profit: 520 crore (comparable to 290 crore in FY2023)

• Registered Users: 6+ crore

• Valuation Range: ₹50,000–₹55,000 crore

• IPO Size: 7200 crore (mainly fresh issue)

Strengths

• Booming user base: The retail investment wave after COVID.

• Platform based on technology: Easy interface, extremely interactive.

• Low-cost business model: asset light, scalable.

• High profitability: It is among the only profitable startups in the fintech sector.

Risks

• The sector is of high competitiveness: it competes with Zerodha, Upstox, and Angel One.

• Market dependency: Revenue based on the volumes and investor confidence.

• Regulatory risk: The changing laws governing SEBI on brokerage and commission may affect margins.

Comparison of market and valuation

Although Groww is slightly valued, it has better profit margins and scalability on digital.

Lenskart, on the other hand, presents a more concrete retail expansion case with good brand presence and international expansion prospects.

Analyst View: Short-Term vs. Long-Term Value

Lenskart, A Brand-Based Consumer Play

• Excellent in the case of investors interested in consumer technology.

• Listing gains in the short run may be average because of high valuation.

• High growth potential over the long run because the penetration of eyewear in India (around 30 percent) will increase to world averages.

Groww: A Fintech Growth Story

• It enjoys the direct benefit of a boom in the retail investor base, as well as the financialization trend in India.

• High growth, asset-light model can be superior over the years.

• Nonetheless, it is vulnerable to regulatory changes by the SEBI and volatility of the market.

Market Sentiment Trends and Subscription Trends

There is early market buzz that the two IPOs have high subscriptions, but the HNI and retail investors are duly subscribing to the IPOs.

Nevertheless, some analysts opine that Groww can be better oversubscribed due to the technology emphasis and profitability ratio, and Lenskart can have institutional investors because of brand retail exposure.

 Which IPO Has a Better Value?

Verdict:

 In the case of long-term investors, the two IPOs are promising opportunities.

• Grow in digital growth that seeks to be led by fintech, and

• Lenskart is for those who bet on the growing nature of lifestyle and retail consumption in India.

Short-term investors, however, might find Groww more appealing to list gains, whereas Lenskart will be appealing to those investors that want steady and brand-backed compounding.

 Conclusion

Both Lenskart and Groww are the modern-day success stories of startups in India, changing the respective industries, which are retail eyewear and digital investing.

Although Groww is the future of fintech in India, Lenskart is a sign of consumer demand and expansion of omnichannel retail.

Ultimately, the correct decision will rest in your investment style

•  Tech-driven growth (Groww) or

•  Retail expansion based on brands (Lenskart).

In any case, both IPOs are positive milestones of the dynamic equity market in India in 2025.