Lenskart's 2.5% share is purchased by Peyush Bansal at a 90% reduced price prior to the company's IPO.
In a significant move, Peyush Bansal, co-founder and CEO of Lenskart, has purchased a 2.5% stake in the company for a whopping Rs 222 crore. This acquisition is part of a growing trend among Indian internet companies, which have been allocating equity to founders at discounted valuations ahead of initial public offerings (IPOs).
The buyback was not the only financial move for Bansal. Despite the purchase, he is also selling 20.5 million shares in Lenskart's upcoming IPO. The IPO, expected to be among India's largest this year, includes a fresh issue of Rs 2,150 crore and an offer for sale (OFS) component.
The financials of Lenskart have been on an upward trajectory. The company's operating revenue rose nearly 23% to Rs 6,652.5 crore from Rs 5,427.7 crore in the previous fiscal year. This growth has been reflected in Lenskart's valuation, which, following its most recent fundraising in June 2024, was valued at $5 billion. Subsequently, Fidelity marked up its stake, implying a valuation of $6.1 billion.
The promoter group, including Bansal, holds around 20% in Lenskart, with institutional investors owning the remainder. Fellow co-founders Neha Bansal, Amit Chaudhary, and Sumeet Kapahi will offload a collective 31.8 million shares. The acquisition was made from a group of these institutional investors, including SoftBank, Chiratae Ventures, Kedaara Capital, TR Capital, Temasek, and Premji Invest.
The proceeds from the IPO will primarily be directed towards business expansion and strengthening Lenskart's market position. Rs 213.4 crore will fund technology and cloud infrastructure. Rs 591.4 crore will go toward lease and rental payments for existing stores. Rs 320 crore is earmarked for branding and promotional activities. Rs 272.6 crore from the IPO proceeds will be allocated for establishing 620 new company-owned stores by FY29.
Lenskart has emerged as one of India's largest eyewear brands with a growing international presence across Southeast Asia and the Middle East. The company posted a net profit of Rs 297.3 crore in FY25, a significant turnaround from a loss of Rs 10.2 crore in FY24. The secondary share purchase values Lenskart at Rs 8,700 crore (approximately $1 billion), according to filings in Lenskart's draft red herring prospectus (DRHP).
In conclusion, Peyush Bansal's stake acquisition and the upcoming IPO are strategic moves aimed at furthering Lenskart's growth and market presence. The company's financial success and international expansion are promising indicators of its continued success in the future.
