Lenskart is an Indian online portal for eyewear, founded by Peyush Bansal in November 2010 in Delhi. The company's portfolio of products range from prescription glasses, contact lenses to sunglasses. Its business model is what makes the company different from others, as it bridges the gap between different touch points i.e. it gives the customer an Omni channel experience where a customer can order either from store or from online medium.
Lenskart is one of the e-commerce companies that operates in both online and offline distribution channel. Customers can order their products over the online portal or from lenskart's uniquely designed offline store. The company is revolutionizing the eyewear industry through first of its kind “Home eye checkup”. Lenskart also become a unicorn company in the year of 2019.
The company delivers products to over 450 cities in India. Valyoo Technologies is the parent company under which it is registered. Lenskart app is the No1 shopping app for eyewear as it has the widest collection of specs, sunglasses, goggles, frames, anti-glare, contact lens, reading glasses, computer glasses, try glasses at home, prescription sunglasses and eye accessories.
A Brief History of Lenskart
The founder and CEO of Valyoo Technologies (parent company of Lenskart) is Peyush Bansal. He pursued his Bachelors in Electrical Engineering and sectors of IT, control and automation from McGill University, Canada in 2006. He then returned to India to pursue PG in Management from IIM Bangalore, peyush then worked as a program manager with Microsoft for a year.
Peyush launched his company Valyoo Technologies with SearchMyCampus as the first business portal in 2007. It was a classified site for students that provided options for accommodation, books, part time jobs, carpool facilities and internship opportunities. When that became a big hit, Peyush wanted to explore in the ecommerce world. While exploring opportunities the eyewear segment caught his eye and inspired him to come up with his own.
This led to the creation of Flyrr.com which was a website that focused on eyewear market in the US. Flyrr went on to gain good traction and this prompted him to test the waters in the Indian markets and launch Lenskart in November, 2010. Lenskart then started with just selling contact lenses and added eyeglasses a few months later continued by the sunglasses.
The business model of Lenskart
Lenskart offers over 5000 frames and glasses and more than 45 different kinds of high quality lenses. The company follows an inventory led business model wherein equal sourcing is done from India and China. Lenskart has their own team of designers and stylists that keep a tab on the latest trends in the eyewear department, the designs made by the team are then passed down to the manufacturers.
In order to reach the masses they have also ventured into offline stores through the franchises model. They have more than 50 stores across 30 cities with a target to cover more than 50 cities. They have balanced the reach by spreading out across metro and non-metro locations and are currently serving more than 4000 people in a day and looking at scaling it up to 200,000 people in the coming years.
They are 4 success factors in this industry which is the quality of the product, the product portfolio, the delivery time and lastly the sales service. Lenskart has a good value preposition that provides high quality product at affordable prices. They also have a team of 1000 people which operate on manufacturing, eye technicians, custom service, technology and logistics which further expand as the growth demands.
|Headquaters||Faridabad, Delhi NCR, India|
|Founder and CEO||Peyush Bansal, Amit Chaudhary and Sumeet Kapahi|
|Annual Revenue||$68.3 Million|
|Products & Services||prescription glasses, contact lenses to sunglasses|
The Omni Channel method
Lenskart started off as an online business, but when they understood that the Indian customers prefer to touch and feel the product before buying a high involvement product. This is when they shifted to the omni strategy as it was important for them to leverage technology to actively engage their customers and adapt to the ever changing consumer expectations.
Nearly 22% of digitally influenced consumers in 2014 said that digital drove them to spend more across all categories. For Lenskart, customer engagement is important as they help their customers get a shopping experience tailored according to each customer’s preferences. Lenskart are trying to keep themselves close to the customers and increase trust by providing value proposition and home eye checkups.
Lenkart is known to give bundled offers like buy two at the cost of one or cross offers like giving the first frame for free, real time offers, personalized recommendations, email coupons, etc. Lenskart has expanded to 80 cities which is based on the franchise business model which 35% of all revenue is shared with the franchisee and annual fee of 2, 00,000 lakhs.
Lenskart has raised a total of $459.6 million in funding over 9 rounds. Their latest funding was raised on Dec 20, 2019 from a series G round. The company was funded by 12 investors SoftBank Vision Fund, Kedaara, Chiratae Ventures, T&R, Unilazer, IFC, TPG, Adveq, IDG Ventures. Lenskart has four investments and their most recent investment was on 13th October, 2020 when Tango Eye and Ditto valued at $500k each.
The total funding of lenskart is $459.6 million which are:
- October 2011 raised $4 million in series A.
- February 2013 raised $10 million in series B.
- January 2015 raised $21.9 million in series C.
- April 2016 raised $60.1 million in series D.
- January 2017 raised $3.5 million in series E.
- September 2019 raised $55 million in series F.
- December 2019 raised $275 million in Series G.
- “First frame is free” offer - where customers will pay for only the lens on their first purchase. Good strategy to attract first time buyers.
- “Try at home” – where customers can choose of a maximum of 5 frames and try them at home before making a final purchase. This has led to more sampling by customers.
- Eye checkups by optometrists at home across cities has been introduced.
- They have been doing 1500 checkups a day and have a conversion of 50%.
- Innovation use of technology – developed a 3D facial visualizer where customers can see how the frames will look on them.
Features of Lenskart
- Infinite variations and model of Eyewear.
- Find a frame that suits your style.
- Latest collection with fashionable trends.
- Book Eye checkup at your own home.
- Shop from a range of 100% authentic brands.
- Order online and pay cash on delivery.
- Scan product barcodes with the camera.
- Live chat with the customer support team.
Lenskart competitors include both online and offline players. Even traditional retailers who specialize in eye wear are the competitors of lenskart. Competion is clearly heating up in this space with players like GKB, Lawrence and Mayo, Titan Eye plus, Baush and lomb, Vision express, Specsmakers, Deals4Opticals. Some manufactures like Ray Ban, Essilor who have their own online stores.
Lenskart faces competition from ecommerce marketplaces like Amazon, Flipkart, Paytm Mall, Snapdeal which sell eye wear and impact its business directly. With a market size of Rs. 18000-20000 crore, organized players account for barely 9-10% of the market. The brands compete with a vast variety of low priced products available offline and online so the challenge is to steer customers away from local opticians and keep them loyal.
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