A complete analysis of Lenkart’s success story from a startup to a unicorn company.
- Introduction
- Foundation
- Lenskart and its unique characteristics
- Lenskart funding rounds
- Lenskart in 2022
- Final words
Introduction
“Our focus was always that we are never happy with good enough, we knew that good is never good enough.”
says Peyush Bansal (The Founder of Lenskart)
Certainly, such an outstanding vision is what it takes to become an elite unicorn company. The story of Lenskart and its present driving force has got millions interested, like you and me!
To mitigate this common interest of the masses has this blog been curated, so hang on.
Today, we will roll back to the startup phase from the current unicorn entitlement of Peyush Bansal’s renowned brand Lenskart, his journey, and the various rounds of funding it undertook to reach this mammoth growth.
Without any further ado, let’s dive in.
Foundation
Lenskart owner Peyush Bansal has been in the limelight ever since he joined Shark Tank as a shark member. By the end of the show, he has invested a significant amount in supporting multiple startups. After all, his net worth in rupees in 2022 is 8 cr (80 million).
But before reaching this entrepreneurial stature, Peyush Bansal pursued his bachelor’s in Electrical Engineering that landed him in the tech giant Microsoft. However, he made a shocking decision when he left his job and flew to India. Value addition was his desire which he could not fulfill at Microsoft.
After his return in 2007, he secured management in Diploma in Entrepreneurship from IIM Bangalore that paved his way towards a billion-dollar business. During his IIM days, he founded Valyoo Technologies, under which he started a student portal SearchMyCampus followed by Lenskart.
Peyush Bansal, along with co-founders Amit Chaudhary and Sumeet Kapahi, initiated Lenskart in 2010 that is now famed in the global eyewear market.
Lenskart and its unique characteristics
The business model
Based in Faridabad, India, Lenskart is an optical prescription eyewear retail chain that operates the first-ever eCommerce platform i.e., Lenskart website for power eyeglasses, blue block glasses, sunglasses, contact lenses, and more.
Although they started with an online model, they soon changed their focus to brick-and-mortar stores. Having established 900+ stores across 100+ cities in India, Lenskart now operates an online and offline business model. Such working methodology is what makes them stand apart.
Manufacturing capacity
Before discussing its unique features, let us understand its outrageous manufacturing capacity. The figure exceeds 3 lakh+ Lenskart frames per month at its manufacturing unit in Delhi. In addition, another 20% of its production is undertaken at their factory in Zhengzhou, China. The numbers indicate the demand of the brand and its widespread consumer base.
Unique features
The e-tailer sold an astounding 8 million pairs of eyeglasses in the year 2020. To generate such demand, they leave no stone unturned. In the words of Peyush Bansal,
“We have to understand what consumers want, and we will continue to surprise them with experiences which are 10 times, 20 times better than they have ever had – both in terms of the experience and the price they are paying for the experience.”
The key takeaway for budding entrepreneurs is to remain customer-centric, carefully understanding the demand and addressing them with super products.
For Lenskart, dispensing eyewear online was a challenging task in a market that was hardwired to buy prescription eyewear conventionally. They realized that they would have to deliver real-life and a greater shopping experience to overcome this challenge. Hence, Lenskart came up with some out-of-the-box ideas and technology such as a Lenskart try-on, home eye checkup, and more. Above all, Lenkart’s unique features enlist as follows:
- 14-day replacement guarantee
- Free home delivery
- Home eye checkup
- 5000+ eyewear models
- 3D try-on
- Robotic manufacturing for accuracy
- Vigorous discounts and Lenskart vouchers
- Store locators
If you observe, you’ll see each of the features is designed to give comfort and assurance of a safe purchase to its customers for various refractive errors like Myopia, Hyperopia, Presbyopia, Astigmatism, and Voila; look at the wonders it did! Today, Lenskart claims 30% of India’s total eyewear market share alone.
Lenskart Funding History
| Date | Round | Amount | Lead Investors |
| July 19, 2021 | Series H | $220M | Alpha Wave Global and Temasek Holdings |
| May 16, 2021 | Secondary Market | $95M | Kolhberg Kravis Roberts |
| December 12, 2019 | Series G | $275M | Soft Bank Vision Fund |
| September 16, 2019 | Series F | $55M | Kedaara Capital |
| August 7, 2018 | Secondary Market | – | Equip Capital |
| January 9, 2017 | Secondary Market | $240M | Unilazer Ventures |
| September 6, 2016 | Series E | $2B | PremjiInvest and Rajeev Chitrabhanu |
| May 4, 2016 | Series D | $60.1M | TPG, IFC, Chiratae Ventures and Adveq |
| January 2, 2015 | Series C | $22M | TPG, TR Capital, Rajeev Chitrabhanu, and Chiratae Ventures |
| December 1, 2012 | Series B | $10M | Unilazer Ventures and Chiratae Ventures |
| October 1, 2011 | Series A | $4M | Chiratae Ventures |
Lenskart has raised a total funding of $774M in 11 rounds. They undertook the latest round on July 19, 2021. So let us start from the latest to earliest rounds of funding.
Series H Lenskart Funding
Date: July 19, 2021
Amount: $220M
Lead Investors: Alpha Wave Global and Temasek Holdings
In the latest funding round with a pre-money valuation of $2.3 billion, an announcement was made for series H round funding on July 19, 2021. Here, Lenskart raises $220 million at a valuation of $5 billion.
Series H funding followed just five months after raising $315 million at $2.5 billion. The valuation is compared to that of Warby Parker’s market capitalization.
Lead investors include Alpha Wave Global and Temasek Holdings. Other investors are Chiratae Ventures and Bay capital. In May 2021, they raised $95 million from KKR (Kolhberg Kravis Roberts) in the secondary market funding, which they will use with current financing for expansion purposes.
With the accumulated funds, the company plans to extend its operations in Southeast Asia and the Middle East together to achieve a market of $15 billion by 2025.
“Lenskart envisions to have 50% of India wearing its specs over the next 5 years and become the #1 eyewear platform in Southeast Asia and the Middle East over the next 18 to 24 months through organic and inorganic expansion.” says Peyush Bansal.
Series G Lenskart Funding
Date: December 12, 2019
Amount: $275M
Lead Investors: Softbank Vision Fund
On December 12, 2019, Lenskart raised $275 million from Softbank Vision Fund. The valuation of Lenskart before funding was $1.2 billion.
At this point, the Lenskart company already had 500+ stores in 100+ cities in India. Over 60% of the revenue came from their online store. The purpose of raising this funding was to expand its business across the country.
“A large part of this investment will go towards building next-generation technology and supply chain to deliver the next billion glasses with the highest quality at the best price and most amazing customer experience.” says Peyush Bansal
Series F Lenskart Funding
Date: September 16, 2019
Amount: $55M
Lead Investors: Kedaara Capital
A few months before the G round, Kedaara Capital, a Mumbai-based private equity firm, invested $55 million in Lenskart in Series F round of funding. The company was valued at $1.15 billion then.
The outcome of the funding was Lenskart’s business expansion in Singapore. They successfully established a fully owned subsidiary Lenskart Solutions Pte Ltd. Starting with two stores, they have envisioned offline model expansion in Singapore.
In the same year, they announced a startling 56.3% increase in revenue.
Secondary Market
Date: August 7, 2018
Amount: $240M (Jan 9 2017)
Lead Investors: Eqip Capital and Unilazer Ventures
On August 7, 2018, Lenskart Solutions Private Limited, Mswipe Technologies Private Limited, and NestAway Technologies Private Limited were the first three investments made by Epiq Capital, which former venture capitalist Rishi Navani created.
Earlier on January 9, 2017, the company raised $240M from Ronnie Screwala’s Unilazer ventures. The goal was to increase its reach from 250 to 500 stores.
Series E Lenskart Funding
Date: September 6, 2016
Amount: $2B
Lead Investors: PremjiInvest and Rajeev Chitrabhanu
PremjiInvest is a private investment venture of Azim Premji – Chairman Wipro Ltd that invested $2 billion in Lenskart along with Rajeev Chitrabhanu on September 6, 2016. The company was valued at $16 billion before funding.
Series D Lenskart Funding
Date: May 4, 2016
Amount: $60.1M
Lead Investors: TPG, IFC, Chiratae Ventures and Adveq
Series D was held just four months before the E round. An investment of $60.1 million was raised in this round. Investors included TPG Growth, IFC Venture Capital Group, Chiratae Ventures, and Adveq.
Lenskart was determined to penetrate tier 3 and 4 cities of India. Further, they aimed at increasing the reach of its high-quality eyewear offerings throughout 400 locations by strengthening its technology, supply chain, and lens manufacturing.
Series C Lenskart Funding
Date: January 2, 2015
Amount: $22M
Lead Investors: TPG, TR Capital, Rajeev Chitrabhanu, and Chiratae Ventures
On January 2, 2015, Lenskart raised $22 million in a Series C financing from TPG Capital, TR Capital based in Hong Kong, Rajeev Chitrabhanu, and Chiratae Ventures, valuing the company at $100 million.
Series B Lenskart Funding
Date: December 1, 2012
Amount: $10M
Lead Investors: Unilazer Ventures and Chiratae Ventures
On December 1, 2012, $10 million was raised in a Series B funding that included investors Unilazer ventures of Ronnie Screwala and Chiratae Ventures.
Series A Lenskart Funding
Date: October 1, 2011
Amount: $4M
Lead Investors: Chiratae Ventures
Lastly, on October 1, 2011, Lenskart raised the first round of Series A funding a year after their establishment. Their first investor Chiratae Ventures invested an amount of $4 million that gave a much-required boost for the success it witnessed in the years so far.
Chiratae Ventures has invested in multiple funding rounds and has been a major contributor in Lenskart’s journey and Softbank that holds a 20% stake in the company.
Lenskart in 2022
Market share and Vision
In a country where 1.5 million eyeglasses are dispensed every day, Lenskart has managed to slice a major market share for tech-savvy consumers. Their goal is to acquire 50% of the eyewear market from its current 30% stake shortly. Peyush Bansal once said,
“We want to be the Maruti of eyewear.”
With the mission of ”Vision to India,” they released Lenskart lite, a low-cost franchise model for India’sIndia’s tier 3 and tier 4 cities. The format requires an Rs. 20 lakh investment from micro-entrepreneurs for 4 to 6 lakh revenue estimated per month. For tier 2 cities, the current model requires an investment of Rs. 35 lakh with 8 to 9 lakh monthly revenue.
Lastly, as mentioned earlier, Lenskart also plans to build a strong consumer base in the Middle East and Southeast Asia with the funding achieved from the last round.
Finally, Lenskart valuation in 2022 is $5 billion after all the funding rounds so far.
Offerings
Lenskart dispenses eyewear from 5000+ frames and 45 varieties of lenses to 4000 buyers daily. The goal is to take it to 2 lakh soon. The business at present requires power correction details from the customer, but they soon would come up with power testing facilities in stores.
Final words
On a final note, the eyewear industry has witnessed monumental changes ever since the inception of Lenskart in 2010. Considering their vision and endeavors, the buyers can expect better purchasing experiences in years to come.
As the competition tends to get fierce, the quality of products and services and an online presence will be the primary bet for eyewear businesses. Leveraging the benefits of content marketing, social media, and more can help retailers take their business beyond their physical stores.
In a nutshell, as Lenskart’s growth remains unconfined, the future of eyewear is bright yet fierce.
