Lenskart Raises ₹100 Crore from SBI Mutual Fund Ahead of Mega IPO — A Strong Signal of Investor Confidence

Author: Aditya Pareek | EQMint | Market News

India’s leading eyewear brand Lenskart has raised ₹100 crore from SBI Mutual Fund in a pre-IPO round, marking a key milestone ahead of its highly anticipated public offering. The investment reflects growing institutional confidence in India’s fast-expanding consumer-tech sector and signals Lenskart’s strong positioning as it transitions from a startup success story to a listed retail powerhouse.

The Deal Structure

The ₹100 crore investment was made through SBI Mutual Fund’s Alternative Investment Funds (AIFs) — specifically its SBI Optimal Equity Fund and SBI Emergent Fund. Both schemes collectively acquired nearly 25 lakh shares at ₹402 per share, valuing Lenskart at an impressive US $7.7 billion (around ₹68,000 crore). The shares were purchased from company promoter Neha Bansal, making this one of the most notable domestic fund entries into India’s D2C retail space this year.

A Valuation Benchmark Before the IPO

This investment pegs Lenskart’s valuation at the upper end of the price band expected for its upcoming IPO. The transaction has effectively set a benchmark for the eyewear giant’s public listing, which is slated to take place later this year. The IPO is expected to include a fresh issue of around ₹2,150 crore and an Offer for Sale (OFS) component from existing investors.

Industry observers note that such a pre-IPO entry by a reputed domestic mutual fund underlines growing faith in the company’s fundamentals and long-term strategy — a sign that Indian institutional investors are increasingly participating in the consumer-tech growth story once dominated by global private equity funds.

Lenskart’s Business and Growth Story

Founded in 2010, Lenskart has revolutionized how Indians buy eyewear — combining e-commerce convenience with an omnichannel retail network. Today, it operates more than 2,000 stores across India and international markets like Singapore, the UAE, and the Middle East.

The company has been at the forefront of leveraging technology — including virtual try-on tools, home eye-testing services, and AI-based lens recommendations — to enhance customer experience and brand stickiness. Its strategy of blending digital reach with offline accessibility has given it a strong moat in an otherwise fragmented market.

Financially, Lenskart has displayed solid momentum. For FY25, it reported a net profit of ₹297 crore, swinging back into the green after a small loss in the previous year. Its revenues rose 23% year-on-year to ₹6,652 crore, reflecting robust consumer demand and operational scalability. The company’s continued focus on profitability, coupled with expansion into global markets, has strengthened its credibility ahead of the IPO.

How the Funds Will Be Used

According to company insiders, the proceeds from the pre-IPO round and upcoming IPO will be directed towards multiple growth initiatives, including:

Expanding company-owned stores across key metros and Tier-2 cities.

Upgrading technology infrastructure, including AI-driven supply chain and data analytics systems.

Paying leases and rentals for new and existing outlets.

Brand marketing and customer acquisition, especially in international markets.

Strategic acquisitions in the eyewear and lens manufacturing ecosystem to enhance vertical integration.

These strategic investments are expected to accelerate Lenskart’s goal of becoming a global eyewear leader — one that can compete with legacy brands while offering affordable products to millions of consumers.

What Makes This Investment Significant

The participation of SBI Mutual Fund in a pre-IPO round marks a watershed moment for India’s consumer-tech ecosystem. Traditionally, such rounds were dominated by foreign institutional players or venture capitalists. However, with domestic funds now participating, it signals a maturing capital market that is increasingly confident in the long-term viability of homegrown tech-driven consumer brands.

This also brings stability to the upcoming IPO. With a large institutional investor like SBI Mutual Fund anchoring the valuation, retail investors are likely to perceive Lenskart’s offer as a more secure and validated bet.

Potential Challenges and Market Expectations

While the buzz around Lenskart’s IPO continues to build, analysts caution that execution risks remain. The company’s rapid expansion strategy requires heavy capital expenditure, and maintaining margins while scaling internationally could pose challenges. Moreover, the eyewear retail market, though underpenetrated, is becoming increasingly competitive with new entrants and online-only players.

Still, Lenskart’s strong unit economics, brand recall, and tech-first retail approach give it a significant competitive advantage. Investors will be closely watching whether the company can sustain profitability, manage global supply chains efficiently, and maintain its innovation edge post-IPO.

A Defining Moment for India’s Consumer-Tech IPOs

Lenskart’s successful pre-IPO fundraising underscores a broader trend — India’s leading digital-first companies are now seen as credible, profitable businesses ready for the public markets. This marks a shift from the “growth at any cost” mindset of the previous decade to a sustainable growth and profit-driven model.

For the market, Lenskart’s IPO could serve as a bellwether for other major startups — from D2C brands to consumer-internet ventures — planning to go public in the next 12–18 months. For investors, it offers an opportunity to participate in a brand that has already become synonymous with affordable, tech-enabled eyewear.

Conclusion

The ₹100 crore investment from SBI Mutual Fund is not merely a financial transaction — it’s a vote of confidence in Lenskart’s business model and India’s consumer-tech potential. As the company heads toward its IPO, all eyes will be on how it balances expansion with profitability and delivers long-term value to its shareholders.

Lenskart’s journey from a small online retailer to a multi-billion-dollar brand reflects the evolution of Indian entrepreneurship itself — innovative, resilient, and ready for the global stage.

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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.