Eye On Global Horizons, Can Lenskart Win On Affordability Card?

LensKart sees itself as the largest eyewear retailer in India in terms of revenue, even with a meagre 4-6% of the market in its command. The observation comes from the draft IPO papers filed by the Peyush Bansal-led firm last month.   

Does it look through a foggy lens? Well, in a grossly fragmented market with unorganised players controlling 76% of the $9.2 Bn retail pie, according to the draft IPO papers, the share of the branded retailer is arguably one of its biggest chunks. 

The share of D2C brands in organised eyewear retail is still smaller, but Lenskart secured a distinct position there by playing the affordability card. It worked, beyond doubt, in India’s price-sensitive market. The company closed FY25 with a business of INR 4,060.6 Cr from India. And, there’s a huge room for disruption, as the penetration of prescription eyeglasses in India remains modest at 35%, claimed the company.

Nearly 53% of India’s bespectacled populace suffer from some kind of refractive errors, simply put, vision defects, according to a Redseer report that Lenskart quoted in its draft IPO papers. The reason being a lack of awareness, poor density of eyewear stores, and most importantly, high prices.

These facts helped Lenskart build its array of eyewear products, evolve from a tech-first marketplace to an omnichannel retailer with more than 2,000 outlets across the country, and go for a public float.

The SoftBank-backed company looks to raise INR 2,150 Cr from fresh shares, with its offer-for-sale component raising the issue size to INR 7,500 Cr to INR 8,000 Cr, making it one of the largest public issues to hit the primary market in the near future. The company has also converted to a public entity ahead of its $750 Mn to $1 Bn public float at a valuation of $7-8 Bn. 

A rosy picture indeed, unless we put down the rose-tinted glasses and see the reality eye-to-eye. 

Looking Through The Lens Of Reality  

Lenskart aims to create a dent in one of the most convoluted retail segments in India, where the average selling price of a pair of prescription eyeglasses hovers at INR 2,370 ($28), which is certainly not within the reach of half a billion people from the disadvantaged section and suffering from some kind of vision anomaly. 

It’s a market where even the giants like Titan Group and Reliance have failed to crack the code and the street-corner chasmawala (unbranded eyeglass seller) remains more trusted than the fancy eyewear brands. 

Our eyes are turning weaker, thanks to endless doomscrolling, stretched work hours in front of screens, environmental hazards and so on, often compelling us to think that a prescription eyewear sells like candies, but Lenskart, like its industry peers, is still struggling its way to find a sweet spot from where it can set off and challenge the army of unorganised retailers. 

Has The India Vision Turned Greasy? 

Business in India made up 60.64% of Lenskart’s overall revenue of INR 7,009.2 Cr in FY25. The revenue growth from the Indian market in FY25 stood at 26.64% against 34.04% a year ago. 

But Lenskart is in no mood to see it as a cause for concern. The omnichannel eyewear retailer turned profitable in FY25, posting a net profit of INR 297.3 Cr versus a net loss of INR 10.1 Cr a year ago.

The company’s strong tech backend, coupled with fast deliveries and virtual try-ons, have scored a hit with its urban consumers who are served by 900 retail stores, it claimed in the draft red-herring prospectus (DRHP). The documents also show a growing focus on tier II towns and beyond, especially for the offline push and where the unorganised eyewear retail is still strong. 

Lenskart had 469 stores in tier I cities as of FY25 – up from 385 in FY24 – and 698 stores in tier II cities and beyond, up from 609. Around 60% of the new outlets were launched in tier I and II cities. “As of March 31, 2025, our footprint included 2,067 retail stores spread across 1.65 Mn Sq Ft in 399 cities in India and 656 retail stores spread across 0.67 Mn Sq Ft outside of India,” reads the DRHP.

Eyewear business demands cost-intensive manufacturing capabilities, integrated supply chain, and advanced diagnostic (eye testing) system, besides sales and manufacturing edge, Lenskart said. “The out-of-pocket, cash-pay nature for prescription eyeglasses often delays or discourages adoption. However, rising penetration of vision and general health insurance, particularly through employer-sponsored and government schemes, is beginning to increase the penetration of prescription eyeglasses.” 

The online channels are also still not a trusted vehicle to drive sales when it comes to buying prescription glasses, which constitute 70% of the overall eyewear market. “Consumers remain hesitant to buy prescription eyeglasses online due to limited digital familiarity, a lack of tactile experience, and absence of in-person adjustments, which together hinder at-scale adoption in low digital penetration markets.” 

In fact, the penetration of online channel has been less than 8% of the total sales of prescription eyeglasses around the world as of FY25. In India, the share was less than 5%, which is lower than in other discretionary categories.

Is Going Global A Myopic Vision?

Call it ambition, the eyewear brand set out on an acquisition overdrive beyond the Indian frontiers after 2023. The strategy seemed to be building a global brand from India that could compete with eyewear retail chains overseas. 

As the outlook for India turned blurry, Lenskart zeroed in on inorganic growth in the markets of Japan, the Middle East and Southeast Asia. In fact, its global gamble began in 2019 with one outlet in Singapore. The company has since expanded rapidly with nearly nine overseas acquisitions, distributed evenly among Japan, France and China. Japanese premium eyewear brand Owndays shines brightest in its kitty.

Lenskart’s listing plan, too, is woven around the acquisition-led growth it is aiming for in the overseas markets. The company intends to spend a part of the net proceeds from the IPO, looking at the vast untapped market in these countries for affordable premium eyewear, where digital-first spending is gaining traction.

The overseas growth is expected to help the eyewear retailer bump up its margins because of factors like higher price of prescription eyeglasses and sunglasses, greater health awareness and lower population density that makes offline expansion relatively smooth with fewer outlets required.

In FY25, international operations contributed INR 2,638.72 Cr to Lenskart’s overall revenue, growing 16.5% over INR 2,246 Cr in FY24, which was a 57.7% rise from that of FY23. These markets made up 39.36% of Lenskart’s FY25 revenue pie,  spike from 37.9% in FY23. 

But setting its eyes on lucrative, large markets comes with a price – each market is distinct from another and the company has to adapt to the variations. The Southeast Asian market, for instance, is ruled by unorganised small eyewear retailers – much like in India – while the markets like Japan and the Middle East are dominated by traditional, organised retail players. 

This becomes a challenge for a company to resolve unless it owns the entire supply chain, manufacturing capabilities, has the geo-mapping of the demand-generating centres, and possesses skilled manpower to perform precision-based testing and other activities.

Moreover, Lenskart has projected itself as an eyewear brand for all in some geographies. Therefore, it needs to reposition itself as a premier luxury brand in other markets.

This explains why the company believes in keeping the brand identities of all the products under its belt. “We target different customer categories through a portfolio of brands and sub-brands that include premium collections through John Jacobs and Owndays, and economy and affordable premium collections through Lenskart Air and Vincent Chase,” the company said in the IPO documents.

Eyeing To Crack The Chinese Puzzle 

Lenskart set up a manufacturing facility, Baofeng Framekart Technology Limited, for the production and sale of spectacle lenses, spectacle frames and accessories, import and export of goods and technology in China in 2018. It owns 51% in the joint venture. 

As per the data furnished in its DRHP, Lenskart’s 42% imports for manufacturing and designing come from its Chinese facility. 

While the eyewear brand acknowledged that it faces potential risks due to supply chain disruptions, geopolitical tensions, brand perception and customer loyalty because of Chinese imports, Lenskart is firming up its manufacturing capabilities within India by launching factories in the Gurugram industrial cluster and inking a deal with the Telangana government for setting up factories there. 

Enough Clarity In Viewing The Future?

Lenskart’s India journey shows impressive scale, a well-run omnichannel playbook, and consistent top-line growth. But its shrinking revenue and aggressive bets abroad paint the picture of a brand hedging its future against domestic saturation and margin pressures.

The mega listing will fund global expansion, deepen technological infrastructure, and possibly reduce its China-linked vulnerabilities. Whether Lenskart can balance scale, profitability, and geographic diversification in an INR 1.57 Lakh Cr ($19.1Bn) market that’s set to reach INR 2.04 Lakh Cr ($24.6 Bn) in FY30 will define if it remains an eyewear unicorn or becomes a global consumer tech player with Indian roots.

In the end, the real test will be whether Lenskart can translate the refractive errors into recurring revenues across India and the world.

Edited By Kumar Chatterjee