Lenskart, India’s leading eyewear retailer, marked a significant milestone today as its shares closed slightly above the IPO price on the first day of trading, overcoming an initially lukewarm market response.
The company, which went public with a valuation of approximately ₹70,000 crore, saw its stock recover from a tepid opening to end the day with a modest gain, signaling growing investor confidence in its business model.
Lenskart's Journey to IPO Success
Founded in 2010 by Peyush Bansal, Lenskart has grown from a small online eyewear platform to Asia’s largest eyewear retailer, boasting over 2,000 stores and a customer base of nearly 1 crore.
This IPO, one of the most anticipated in India’s consumer tech space for 2025, was oversubscribed 28 times during its subscription period, reflecting robust demand across retail, institutional, and non-institutional investor categories.
The initial soft opening raised concerns among market watchers, with some pointing to the high price-to-earnings ratio of 230x as a potential deterrent, but the recovery by day’s end suggests investors are betting on long-term growth.
Impact on India’s Eyewear Market
Lenskart’s dominance in India’s $9 billion eyewear market—where it holds a lead five times larger than its nearest competitor—positions it as a key player driving innovation and accessibility in the sector.
Globally, the company has made inroads into Southeast Asia and beyond, leveraging a vertically integrated, tech-first model that allows for cost efficiency and rapid scalability, a factor likely contributing to today’s positive close.
Historical Challenges and Financial Turnaround
Despite its current success, Lenskart faced financial hurdles in the past, reporting a net loss of ₹10.2 crore in FY24 before achieving a profit after tax of ₹297.3 crore in FY25, showcasing a remarkable turnaround.
This financial recovery, coupled with a net cash position of ₹1,500 crore, underscores the company’s resilience and strategic focus on profitability, a rarity among consumer-tech startups at the IPO stage.
Future Prospects and Market Sentiment
Looking ahead, Lenskart aims to utilize the ₹2,150 crore raised from fresh issuance to fuel expansion, enhance technology, and strengthen its global footprint, particularly in underpenetrated international markets worth $20 billion.
Analysts remain cautiously optimistic, noting that while today’s closing above the IPO price is a positive sign, sustained growth will depend on Lenskart’s ability to navigate valuation concerns and competitive pressures.
As India’s eyewear market continues to expand at a rate of 13% annually, Lenskart’s IPO success could inspire other homegrown startups to tap into public markets, potentially reshaping the landscape for tech-driven consumer businesses.
Maria Lourdes
