Lenskart, India’s leading omnichannel eyewear retailer, is witnessing a strategic reshuffle in its shareholding pattern as co-founder and CEO Peyush Bansal gears up to increase his stake ahead of its much-anticipated IPO. Industry experts view this as an assertive move to strengthen promoter control and enhance market confidence before listing.
Why Is Peyush Bansal Raising His Stake?
The pre-IPO stake consolidation trend has been a preferred strategy among India’s new-age founders. Similar to Zomato’s Deepinder Goyal and Nykaa’s Falguni Nayar, Peyush Bansal aims to:
- Signal stronger promoter commitment to public market investors.
- Retain decisive control in boardroom decisions post-listing.
- Reap higher long-term value appreciation with personal equity exposure.
- Counter dilution effects from multiple funding rounds in unicorns.
Lenskart’s Recent Business Highlights
| Parameter | Details |
|---|---|
| Founded | 2010 |
| Founder & CEO | Peyush Bansal |
| Business Model | Omnichannel eyewear retail (online + 2000+ stores) |
| Valuation (2024) | $5 billion |
| Key Investors | Temasek, SoftBank Vision Fund, Abu Dhabi Investment Authority, KKR |
| Revenue FY24 | ₹3,788 crore (estimated) |
| EBITDA FY24 | ₹260 crore (approx.) |
| Profitable? | Marginal net profit reported |
Details Of The Stake Boost
While exact transaction contours remain confidential, market sources indicate:
- Bansal is increasing stake via secondary share purchases from early investors to consolidate ownership before IPO paperwork is filed.
- He is expected to fund this through a combination of personal capital, partial ESOP encashments, and structured deals with investors.
- This move would elevate his holding to approximately 30%, positioning him among India’s top unicorn promoters with strong control stakes.
Founders Who Raised Stakes Before IPO
| Founder | Company | Pre-IPO Stake Move | Purpose |
|---|---|---|---|
| Deepinder Goyal | Zomato | Bought shares from employees pre-IPO | Promoter confidence |
| Falguni Nayar | Nykaa | Consolidated family holding to 54% | Market trust + control |
| Vijay Shekhar Sharma | Paytm | Bought shares from Ant Group to regain control | Strategic stake recovery |
| Peyush Bansal (planned) | Lenskart | Secondary purchase from investors | Enhance promoter grip pre-listing |
IPO And Expansion Plans
Lenskart has initiated groundwork for a domestic listing in 2025-26, following its robust global expansion strategy, especially in the Middle East and Southeast Asia. Recently, it acquired Japan’s OWNDAYS for over $400 million to become Asia’s largest eyewear retailer.
Key IPO objectives include:
- Funding international expansion
- Strengthening supply chain and automated manufacturing
- Reducing debt obligations
- Offering partial exits to large investors like SoftBank and Temasek
Investor Perspective On Stake Boosts
Investors typically view founder stake boosts positively as it indicates:
- Confidence in growth trajectory
- Commitment to remain actively engaged in management post-IPO
- Alignment of interests with minority shareholders
However, analysts caution about:
- Over-concentration of control in founder hands, potentially limiting board independence
- Debt-backed stake purchases impacting promoter leverage ratios
Lenskart’s Market Position And Future Outlook
With a pan-India and expanding global footprint, Lenskart leads India’s organised eyewear market, which is estimated to grow at CAGR of 10-12% over the next five years due to rising optical health awareness and fashion-focused eyewear purchases.
Growth drivers:
- AI-driven lens fitting and try-on technology
- Private-label manufacturing advantage with improved margins
- Rapid Tier-II & III market penetration
- Partnerships with international brands for premium offerings
What Industry Experts Say
Ankur Bisen, retail analyst:
“Founder stake consolidations before IPOs are akin to confidence votes. Bansal’s move comes at a strategic time when public market scrutiny of profitability and governance is intensifying.”
Sneha Sharma, equity analyst:
“The IPO pipeline for 2025-26 will reward profitable unicorns with strong promoter involvement. Lenskart fits that narrative.”
Recent Developments Strengthening Lenskart’s Valuation
- Opened Asia’s largest eyewear manufacturing unit in Bhiwadi, Rajasthan
- Launched innovative brands like John Jacobs and Hooper targeting Gen Z and Millennials
- Achieved 20%+ YOY growth in online sales despite offline expansion
- Entered the US market via online offerings under its premium brands
Challenges Ahead For Lenskart
Despite robust fundamentals, IPO analysts highlight:
| Challenge | Explanation |
|---|---|
| High Competition | Titan EyePlus, Specsmakers, Vision Express continue to expand aggressively. |
| Valuation Justification | Market awaits sustained profit growth to justify unicorn valuations. |
| Global Expansion Risks | Diverse regulatory and consumer behaviour landscapes pose execution risks. |
| IPO Market Sentiment | Upcoming general elections and macro conditions could affect timing. |
Next Steps
- Finalise merchant bankers and legal advisors
- File DRHP with SEBI post stake consolidation
- Conduct pre-IPO investor roadshows across global financial hubs
- Plan targeted ESOP encashment for senior management retention pre-listing
Conclusion
Peyush Bansal’s decision to boost his stake ahead of Lenskart’s IPO marks him among India’s most committed unicorn founders, mirroring global trends where founders consolidate control before entering public markets. As the company gears up for listing in 2025-26, analysts and retail investors will keenly watch how this ownership strengthening translates into post-IPO governance stability, growth momentum, and shareholder returns.
Disclaimer
This news article is for informational purposes only. It is based on publicly available market sources and statements by analysts. Readers are advised to seek professional financial advice before making investment decisions related to Lenskart or similar companies.
