In one of the biggest startup financing deals in the Indian startup industry, billionaire investor Radhakishan Damani, founder of DMart (Avenue Supermarts), has put money to the tune of 90 crores in Lenskart, the largest eyewear retailer, just days before its long-awaited Initial Public Offering (IPO)
Damiani investment further lends credibility to Lenskart future listings as indicated in a report prepared by PTI, and the companies are likely to open next week. It is a big step in favor of Lenskart, under the leadership of Peyush Bansal, who is one of the most popular entrepreneurs in India and also a judge on the Shark Tank India show.
Lenskart IPO Details
According to the Draft Red Herring Prospectus (DRHP), the Lenskart IPO is expected to raise 2.15 crore or so, comprising a fresh issue of shares and an offer of sale (OFS) of approximately 13.22 crore shares of Lenskart owned by existing investors and promoters.
Lenskart is likely to be priced at approximately 9 billion dollars in its IPO, becoming one of the biggest and most valuable consumer tech IPOs in India in the past few years.
Bloomberg News forecasts that with a 2025 percent increase in share price upon the IPO, Peyush Bansal himself would have a net worth of over 1 billion dollars, making him one of the youngest billionaires in India.
The use of IPO Proceeds by Lenskart
The funds collected by the IPO will be utilized in the company as the following:
- Growth—organic and inorganic—through the establishment of new stores in India and other countries.
- Investments in technology to improve its online shopping experience and supply chain.
- Marketing and brand building—to make Lenskart stronger in the world.
- General corporate purposes such as payment of debts and upgrades.
Lenskart’s Growth Journey
Lenskart was established in 2008 by Peyush Bansal with an aim of transforming the eyewear business in India. It established its internet base in 2010 and its first retail store in 2013.
It has over the years become the largest organized eyewear retailer in India with its affordable, stylish, and high-quality glasses, sunglasses, and contact lenses.
By March 2025, Lenskart will have 2,723 stores in India, Southeast Asia, and the Middle East. It is worth noting that 40 percent of its total revenue is currently generated in foreign markets, which is an indication of its growing global presence.
Huge Potential of the Eyewear Market in India.
The current state of India is that it is the capital of myopia of the world, as millions of citizens need vision correction. Lenskart will leverage this huge demand with its technology-based business model, which will offer:
- 3D try-on experiences online,
- low-cost manufacture of lenses in-house,
- home eye-checkup services, and
- fast delivery via its well-developed logistics service.
Bansal told Bloomberg News that:
India is the eyeglass capital of the world; many of our citizens require eyeglasses. When we can get that sorted, the rest of it, scale, profit, and rising market capitalization, would follow.
Radhakishan Damani’s Strategic Move
Rarely does Radhakishan Damani, a conservative but highly successful investor, invest in startups. His support of Lenskart represents a high level of trust in the fundamentals of the company, its leadership, and its potential to grow in the future.
The presence of Damani also boosts the credibility of Lenskart among the conventional investors and institutions, particularly prior to its IPO.
The industry experts opine that the action will help attract more high-net-worth individuals (HNIs) and mutual funds to support the public offering.
Expert Opinions
According to financial analysts, Lenskart has excellent brand equity, and the support of Damani may assist it to start its IPO with a blockbuster debut. As the Indian market for optics and digital customers is on the rise, the company has high chances of success in the long run.
Conclusion
The ₹90 crore investment being made by the DMart founder Radhakishan Damani in Lenskart before its IPO is a good indication of confidence in the surge in consumer tech and retail business in India.
Having a large expansion strategy, international business, and a technologically oriented approach, the IPO of Lenskart is likely to be one of the most followed IPOs of 2025. Lenskart will be the future of eyewear retailing in India and other parts of the world as Peyush Bansal keeps achieving greater heights.
