Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Lenskart.
Today, a third of India's population needs spectacles. The term "need" applies to people who have been diagnosed with vision issues, but only about a quarter of them actually wear spectacles. When we sum up the number of people who choose to wear glasses as a fashion accessory, the figures are staggering. Customers in this group are interested in having several pairs of eyeglasses to go with a range of outfits. Every day in India, over 1.5 million (15 lakhs) spectacles are sold. The industry is highly divided, with mom-and-pop shops dominating. This eyewear industry has taken a new turn since 2010 when Lenskart was born.
Lenskart is an optical prescription eyewear retail chain that operates as an eCommerce marketplace for prescription power glasses, BLU glasses, frames, and goggles. Furthermore, Lenskart also focuses on brick-and-mortar stores and has more than 1,500 omnichannel stores across 175+ cities in India, Singapore, and Dubai. Its Delhi manufacturing facility produces 300,000+ glasses every month. Lenskart also has a factory in Zhengzhou, China, that handles nearly 20% of its production of frames. Hailed as the largest eyewear brand in India, the company is also known as a unicorn prescription eyewear company, having entered the coveted club of Indian unicorns back in December 2019.
If you want to know more about Lenskart, the company, along with some insights into its founders and Team, Funding and Investors, Mission and Vision, Products and Services, Business Model, Revenue Model, Competitors, Growth, Future Plans, and more, then you've got your destination right. This article from StartupTalky will give you a complete insight into the Success Story of Lenskart.
Lenskart - Company Highlights
| Startup Name | Lenskart |
|---|---|
| Legal Name | Lenskart Solutions Private Limited |
| Headquarters | Delhi NCR, India |
| Industry | Prescription Eyewear, E-commerce |
| Founders | Peyush Bansal, Sumeet Kapahi, Amit Chaudhary |
| Founded | 2010 |
| Parent organization | Valyoo Technologies |
| Website | lenskart.com |
About Lenskart and How it Works?
Lenskart - Industry
Lenskart - Founders and Team
Lenskart - Startup Story
Lenskart - Mission and Vision
Lenskart - Name and Logo
Lenskart - Product and Services
Lenskart - Business Model
Lenskart - Marketing Strategy
Lenskart - Funding and Investors
Lenskart - Investments
Lenskart - Acquisitions
Lenskart - Revenue and Growth
Lenskart - Competitors
Lenskart - Challenges Faced
Lenskart - Future Plans
About Lenskart and How it Works?
Lenskart is a leading eCommerce company that maintains an online optical store packed with both classic and trendy eyeglasses, lenses, and more at affordable prices. These glasses can be easily ordered online by the customers, who will get them delivered with many discounts that come and go.
Unlike many other players, Lenskart operates on both an online and offline distribution platform. Customers can shop online at lenskart.com or in person at their distinctively built offline store. With the first-of-its-kind ‘Home eye checkup,’ Lenskart is revolutionizing the eyewear industry. They use specialized robots to deliver glasses in Lenskart that are accurate to 3 decimal places.
Lenskart offers 5000+ different models of eyewear and offers free home delivery with a 14-day replacement guarantee. The company manufactures everything in the eyewear category, from sunglasses to reading glasses to contact lenses.
In this sector, there are the following success factors: product, quality, portfolio, delivery time, and after-sales support. The value proposition of the brand is straightforward, which is to "deliver a high-quality product at a reasonable price."
Lenskart Membership
If you are interested in learning about Lenskart membership, then the company currently has a Gold Membership that the users can avail of at Rs 600 annually, with which they would just have to buy 1 product to get another one free.
Lenskart - Industry
The eyewear industry in India is experiencing substantial growth, with an estimated revenue of $5.58 billion in 2023. This represents a significant market opportunity, as the industry is projected to grow at an annual rate of 8.19% between 2023 and 2027, indicating a promising compound annual growth rate (CAGR). Among the various segments in the Indian market, Spectacle Lenses emerge as the largest segment, with a projected market volume of $2.52 billion in 2023.
To tap into one such market is profitable indeed when the idea of the operation is new and backed by able investors like Softbank, Alpha Wave, and Ratan Tata.
Lenskart was established with the aim of providing ‘Vision to India.' In line with this, they recently developed Lenskart Lite, a low-cost franchise model aimed at upcountry markets, especially tier 3 and 4 markets. The model, which is aimed at micro-entrepreneurs, needs a Rs 20 lakh investment. The format brings in about Rs 4-6 lakh per month in revenue. They already have a standard Lenskart franchise model for the tier-2 markets, with an investment criterion of Rs 35 lakh and estimated monthly revenues of Rs 8-10 lakh.
“We want to be the Maruti [Maruti Suzuki, India’s largest automobile manufacturer] of eyewear in India,” said Peyush Bansal, CEO of Lenskart.
Pratyusha Srivastava
Lenskart - Founders and Team
Peyush Bansal, Sumeet Kapahi, and Amit Chaudhary are the founders of Lenskart.
Peyush Bansal
Peyush Bansal is the CEO and founder of Valyoo Technologies, the parent company of Lenskart. He holds a Bachelor's degree in Electrical Engineering — IT, Control, and Automation from McGill University. After a brief stint as a Program Manager at Microsoft, Bansal realized his desire to make a significant impact and returned to India to address the problem of vision correction.
During his time at IIM, Bansal founded SearchMyCampus, a successful student classifieds platform. Inspired by its success, he ventured into the eyewear market and created Flyrr, a dedicated website for the American eyewear industry. Recognizing the untapped potential in India, Bansal launched Lenskart in November 2010, initially focusing on contact lenses and later expanding into eyeglasses and sunglasses.
Under Bansal's leadership, Lenskart has become a prominent player in the eyewear industry. Additionally, he has gained recognition as one of the judges, often referred to as the "kindest shark," on the popular business reality show Shark Tank India. Bansal's cooperative attitude, belief in brands, and encouragement of aspiring entrepreneurs have made him a respected figure in the business community.
Peyush Bansal also serves as the co-founder of companies like Aqualens, John Jacobs, and Neso Brands in the eyewear industry.
Neha Bansal
Neha Bansal, co-founder of Lenskart, is an accomplished professional with a background in finance and accounting. She completed her B.Com (Hons) from Delhi University and obtained her Chartered Accountant qualification from The Institute of Chartered Accountants of India. Prior to her involvement with Lenskart, she founded and served as the Director of DNS Advisors.
Sumeet Kapahi
Sumeet Kapahi, an alumnus of the University of Delhi, is recognized as a co-founder of Lenskart and currently holds the position of VP of Supply at Valyoo Technologies Pvt. Ltd.
Amit Chaudhary
Amit Chaudhary, an alumnus of the Birla Institute of Technology, Mesra, is another esteemed co-founder of Lenskart. He holds a Bachelor's degree in Information Technology from the institute.
Lenskart Shareholders
Lenskart has a list of owners. The majority of the company's stakes are with Softbank, which controls 18.80% of the stakes. Next comes Premji Invests, which has 10.4% of the stakes. 8.90% of the shares are with Kedaara Capital. In March 2023, ADIA acquired a 10% stake in Lenskart and became one of the largest stakeholders in the company.
Lenskart has over 6000 employees working with the company.
Manav Makhija
Lenskart - Startup Story
Around 1/3rd of the population needs glasses but only some of them managed to get access to them. Besides, India is also popular as the blind capital of the world, which has last recorded nearly 15 million people who are blind. This is the sole reason why Peyush Bansal decided to find "VALYOO Technologies."
As far as the latest revelations via the Shark Tank Peyush Bansal pitch episode, we now know that when he started with Lenskart back in 2010, he discovered that around 50% of the masses require spectacles but only 1/4th of them actually have access to glasses. This is why Bansal sought to revolutionize vision correction and put glasses on for 50% of the masses. The Lenskart co-founder aimed to make his company the "Maruti of eyewear".
With Valyoo, the team sought to add 'valyoo' into the lives of its customers by cutting off the retailers. This way they decided to set up high-quality manufacturing units and facilitate direct supplies of products to the consumers around the country. To ensure 100% precision and top quality control, the company further recognized in-house robotic lens manufacturing and assembly as the best way.
Lenskart - Mission and Vision
Lenskart's mission statement says, "Our mission is to give India a vision," as the world's fastest-growing eyewear company and largest presence online. Lenskart sells prescription eyewear, branded contact lenses, and sunglasses, all of which are personalized to the customers' vision requirements.
Lenskart - Name and Logo
The company edited the three most widely recognized frame shapes – a square, a circle, and a triangle – to create slightly more abstract forms, and this is how the Lenskart logo was created.
Lenskart - Product and Services
Lenskart has over 5,000 frames and glasses to choose from, as well as over 45 different types of high-quality lenses. Its product offerings range from -
- Eyeglasses
- Premium Eyeglasses
- Sunglasses
- Shape options: Wayfarer, Oval, Rounders, Cat Eye
- Size options: Small, Medium, and Large
- Brands: Bausch and Lomb, Johnson & Johnson, Alcon
- Color Contact Lenses, and more
Lenskart - Business Model
Lenskart operates on an inventory-driven business model with a B2C concept. Its in-house stylists and designers keep up with the latest eyewear trends. The manufacturers are then given these designs. By controlling the entire supply chain, the company is able to keep costs down.
The company primarily serves customers through its online platform, offering a wide range of eyewear products. Additionally, Lenskart has strategically expanded into offline retail through franchise stores, catering to a broader audience across metro and non-metro areas.
To support its operations and fuel growth, Lenskart has a dedicated team across multiple verticals including manufacturing, eye technicians, customer care, technology, and logistics. The collective expertise and dedication of these professionals contribute to the seamless functioning of Lenskart's business model and enhance the overall customer experience.
Lenskart is committed to enhancing customer experience by introducing innovative features and technologies. This includes a virtual try-on tool that allows customers to virtually try different frames using augmented reality. The company also offers the convenience of booking a home eye check-up for customers, making vision testing easily accessible.
Avantika Bhardwaj
Lenskart - Marketing Strategy
Lenskart has implemented a robust marketing strategy to establish its presence as a leading eyewear brand. One of the key elements of their approach is leveraging celebrity endorsements to create brand awareness and appeal. Through collaborations with prominent figures like Karan Johar, Lenskart effectively captures the attention of a wide audience and showcases its range of eyewear in a stylish and aspirational manner.
In addition to celebrity endorsements, Lenskart adopts a multi-channel marketing approach, utilizing traditional advertising channels and digital platforms to reach customers. They leverage television, print, outdoor media, and online advertisements to maximize brand visibility. Lenskart also actively engages with customers through social media platforms, influencer collaborations, and interactive features such as virtual try-ons and home trials, providing personalized experiences that enhance customer engagement and simplify the eyewear shopping process.
Lenskart - Funding and Investors
In 2019, Lenskart achieved unicorn status by raising a funding round led by SoftBank, the Japanese financial conglomerate.
Lenskart, the popular eyewear startup, has received funding from a total of 26 investors. Notably, Chrys Capital and the Abu Dhabi Investment Authority (ADIA) are among the recent contributors to Lenskart's funding. ADIA acquired a 10% stake in Lenskart, at a valuation of $4.2 billion.
The funding and investor details of Lenskart are as follows:
| Date | Round | Amount | Lead Investors |
|---|---|---|---|
| Jun 15, 2023 | Series I | $100 million | Chrys Capital |
| Mar 16, 2023 | Series I | $500 million | Abu Dhabi Investment Authority |
| Nov 18, 2022 | Series I | $40 million | DSP Mutual Fund |
| August 8, 2022 | Series I | $12.5 million | Ravi Modi Family Trust |
| June 9, 2022 | Series I | $28.2 million | Avendus Future Leaders Fund II |
| April 27, 2022 | Series I | $25 million | Epiq Capital |
| April 11, 2022 | Series I | $100 million | Alpha Wave Incubation (Previously Falcon Edge) |
| July 19, 2021 | Series H | $220 million | Alpha Wave Global and Temasek Holdings |
| May 16, 2021 | Secondary Market | $95 million | Kohlberg Kravis Roberts |
| Dec 20, 2019 | Series G | $275 million | SoftBank Vision Fund |
| Sep 16, 2019 | Series F | $55 million | Kedaara Capital |
| Aug 7, 2018 | Secondary Market | - | Epiq Capital |
| Jan 9, 2017 | Secondary Market | $3.5 million | Unilazer Ventures |
| Sep 6, 2016 | Series E | $30 million | PremjiInvest |
| May 4, 2016 | Series D | $60.1 million | - |
| Jan 2, 2015 | Series C | $21.9 million | TPG, TR Capital |
| Dec 1, 2012 | Series B | $10 million | - |
| Oct 1, 2011 | Series A | $4 million | Chiratae Ventures |
Lenskart - Investments
Lenskart has made 7 investments to date. Here are the details of the Lenskart investment rounds:
| Date | Organization Name | Round | Amount |
|---|---|---|---|
| May 19, 2022 | GeoIQ.io | Seed Round | $2.3 million |
| Dec 30, 2021 | Tango Eye | Seed Round | $628.09K |
| Dec 20, 2021 | Metadome.ai | Seed Round | - |
| Oct 13, 2020 | Tango Eye | Seed Round | $500K |
| May 7, 2018 | ThinOptics | Venture Round | $500K |
| Nov 11, 2017 | 6over6 | Series A | $11 million |
| Sep 23, 2017 | Ditto | Ditto | $1 million |
Vidhi Punamiya
Lenskart - Acquisitions
Lenskart acquired DailyJoy on April 27, 2021, which was the only acquisition of the company until it picked up a majority stake in Owndays, a direct-to-consumer (D2C) eyewear brand from Japan on June 30, 2022. The Owndays acquisition will help expand Lenskart's presence to 13+ markets in Asia, including Japan.
| Company Acquired | Date | Deal Value |
|---|---|---|
| Owndays | June 30, 2022 | $400 mn |
| DailyJoy | April 27, 2021 | - |
Lenskart - Revenue and Growth
The Lenskart operating revenues witnessed less than 1% growth, which was Rs 900.2 crore in FY20 and became Rs 905.3 crore during FY21.
After flat growth in FY21, Lenskart delivered 66% growth in its operating revenue during FY22.
Lenskart Revenue Breakdown
In FY22, Lenskart experienced significant growth in its operating income, with a surge of 66% to reach Rs 1,503 crore. The sale of eyewear products remained the primary revenue driver, contributing approximately 94.3% of the total operating revenue. This vertical witnessed an impressive increase of 65.8%, generating revenue of Rs 1,418 crore. Subscription fees also saw growth, rising by 14% to Rs. 49 crores. Ancillary revenue from leases, website license fees, scrap, and customer support collectively amounted to Rs 36 crore. Additionally, Lenskart's total revenue for FY22 was boosted by Rs 115 crore from interest on fixed deposits and investment gains, bringing it to Rs 1,618 crore.
Expenses for Lenskart also witnessed significant changes. The cost of procurement emerged as the largest cost center, representing 37% of the overall costs, and experienced a notable 88% surge, totaling Rs 635 crore in FY22. Commission payments to selling agents increased by 64% to Rs. 305 crores. Employee benefits rose by 53% to Rs 245 crore, while marketing and promotion expenses grew by 71.5% to Rs 235 crore. Telepostage and IT costs also recorded substantial increases, reaching Rs 42 crore and Rs 39 crore, respectively, reflecting growth rates of 50% and 77.3%. Overall, Lenskart's total expenses amounted to Rs 1,726 crore in FY22, marking a growth rate of 72.8%.
As a result of the significant increase in total costs, Lenskart reported a loss of Rs 102 crore in FY22, contrasting with the profit of Rs 29 crore recorded in the previous fiscal year (FY21). Cash outflow from operations increased by 56% to Rs 183 crore in FY22. On a unit level, Lenskart spent Rs 1.15 to earn a single unit of operating income.
Some important growth highlights of Lenskart can be summed up as:
- Lenskart is currently recognized as one of the top 3 optical businesses in India.
- Lenskart serves more than 40 million customers.
- The company reaches out to over 1,00,000 customers a month.
- Lenskart is spread over 235 cities in India.
- Lenskart boasts of having over 5000 styles of eyewear, which is 5X more than that of any retailer in India.
Lenskart Subsidiary Neso Brands
Neso Brands, a subsidiary of Lenskart, is a Singapore-based global eyewear brand founded in 2022 to empower DTC brands and help them turn into brands of the future. Lenskart's D2C venture was registered as Neso Brands which was waiting for some funds.
Neso Brands raised $100 million in funding in one of the largest seed rounds raised by any startup, as announced on May 16, 2022. With huge investors like Alpha Wave, Temasek, Softbank, and more, Neso Brands aims to partner and invest in consumer eyewear brands and help them grow by leveraging synergies across the Lenskart Group.
Lenskart - Competitors
Lenskart is up against both offline and online competitors that include:
- Coolwinks
- GKB Opticals
- Specsmakers
- Deals4Opticals
- LensBazaar
- Vision Express
- Titan EyePlus
Lenskart - Challenges Faced
Lenskart faced early-stage challenges in the eyewear industry, including limited accessibility, lack of awareness about eye tests, and affordability issues. Additionally, the most difficult task Lenskart faced was persuading consumers to use the online store as a substitute for traditional shopping. The business needed to shift people's preconceived notions about eyewear and instill trust in them that they offer high-quality goods at lower prices than their brick-and-mortar competitors.
Lenskart's offline shops, desktop platforms, and smartphone apps all performed admirably. However, as opposed to their other sites, the mobile website converted the fewest visitors into customers. To address this, Lenskart guided customers to download their mobile apps as a strategic measure before a full website redesign.
Rishabh Rathi
Lenskart - Future Plans
Lenskart India's vision, "Vision to India," aims to reach the masses by developing a low-cost franchise model. Lenskart Lite is a model that will help them introduce the framework in Tier 3 and 4 cities, as well as expand their presence in Tier 2 cities. It also introduced regular contact lenses that can be quickly discarded. Lenskart's goal is to provide affordable and simple eyewear solutions with the aid of its Aqualens product. It would be extremely affordable to the daily masses who want both trends and costs. The main aim of Lenskart India is to close the distance between selected and unselected lenses.
In addition to its ambitious expansion plans, Lenskart India's vision to reach the masses includes the company's intention to go public within the next few years, allowing the general public to participate in its growth and success as a publicly traded company.
FAQs
What does Lenskart do?
Lenskart is a leading e-commerce company that creates an online optical store that sells a variety of eyewear. Customers will get the new eyewear collections with free home delivery through the company's marketplace, which offers prescription eyewear, branded contact lenses, sunglasses, and accessories.
Who founded the Lenskart company?
Peyush Bansal, Amit Chaudhary, and Sumeet Kapahi founded Lenskart.
Who is the Lenskart CEO?
Peyush Bansal is the CEO of Lenskart.
Which companies are Lenskart competitors?
Lenskart is up against both offline and online competitors. GKB Opticals, Coolwinks, Specsmakers, Deals4Opticals, Lensbazaar, Vision Express, and Titan Eyeplus are some of its key competitors.
What is Lenskart gold membership?
Lenskart membership is a Gold Membership program that allows you to get a free pair of glasses every time you buy a pair of Eyeglasses, including Lenskart power glasses, Lenskart spectacles, or Sunglasses at Lenskart until your gold membership is still valid.
Who is the Lenskart delivery partner?
Lenskart delivery partners are among the most reputed courier services in India including BlueDart, FedEx, DTDC, and more.
