Lenskart IPO: An excessive amount of display screen time, too few optometrists, and one firm going international – Lenskart’s IPO submitting reveals extra than simply financials.
The eyewear unicorn, which clocked Rs 6,653 crore in income in 2024-25 (FY25) and turned worthwhile (Rs 297 crore) for the primary time, is trying to increase Rs 2,150 crore by a recent subject. Over 13 crore shares may also be offloaded through a suggestion on the market, with early buyers corresponding to SoftBank and Schroders Capital anticipated to money out.
However past the numbers, its draft pink herring prospectus (DRHP) affords a lens into deeper traits shaping India’s $10-billion eyewear market: worsening eye well being amongst kids, restricted entry to prescription eyewear, and the high-stakes balancing act of constructing a world model from India.
Display time fueling blurry imaginative and prescient amongst kids
In India, the prevalence of refractive errors that trigger blurry imaginative and prescient has grown quickly amongst these beneath 19 years – from 21 per cent in FY20 to 39 per cent in FY25. For the general inhabitants, the expansion was comparatively slower from 43 per cent to 53 per cent, in line with Redseer analysis cited in Lenskart’s DRHP.
Within the subsequent 5 years, Redseer initiatives greater than half (54 per cent) of youngsters and youngsters could have refractive errors requiring prescription eyewear.
“Contributors embrace extreme display screen time, significantly late-night smartphone use, extended near-work actions like studying and finding out, restricted publicity to pure gentle as a consequence of decreased outside play, and poor visible habits corresponding to incorrect posture and insufficient lighting,” the DRHP stated.
The situation is extra widespread in metro cities (64 per cent) than in tier-1 (59 per cent) or different cities (52 per cent). Whereas India’s total prevalence (53 per cent) is decrease than in Japan (68 per cent) and Southeast Asia (65 per cent), it nonetheless exceeds that of the Center East (40 per cent) – and is anticipated to rise to 62 per cent by FY30.
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Brief on optometrists, eyewear penetration low
Although over half of Indians face refractive errors, solely 35 per cent wore prescription eyewear in FY25, lagging Southeast Asia (40 per cent), the Center East (60 per cent), and Japan (69 per cent). The penetration price is anticipated to extend solely barely to 41 per cent by FY30, indicating that the market will stay closely underserved, in line with Redseer.
Why? The World Council of Optometry (WCO) recommends 100 optometrists per million individuals, however India has simply 35-50 such professionals educated to check imaginative and prescient and prescribe corrective lenses. In Japan, the determine stands at 80-100 per million, 110 within the US, and 200 in Singapore.
Furthermore, India has far fewer eyewear shops (60 per million individuals) in comparison with pharmacies (350-450) or jewelry shops (1,000-1,200). Over 70 per cent of prescription eyewear remains to be offered by unorganised channels, with simply 11-13 per cent through D2C manufacturers like Lenskart and Titan Eye+.
“We could face difficulties find, coaching and retaining certified opticians and optometrists, particularly in Tier 2 and three cities, the place the supply and consciousness of such professionals could also be decrease than in Tier 1 cities,” the DRHP stated.
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Tapping international markets, managing China threat
Not like most Indian-origin D2C manufacturers, Lenskart has constructed a large abroad footprint, with worldwide clients contributing 40 per cent of its FY25 income. The corporate operates over 2,000 shops in India, greater than 250 every in Japan and Southeast Asia, round 40 within the Center East, and one other 100 throughout Taiwan, Hong Kong, and Australia. Its presence in Asia was bolstered by the 2022 acquisition of Japanese eyewear model OWNDAYS.
In 2024, Lenskart made a minority funding in French model Le Petit Lunetier, launching its merchandise in India. Extra not too long ago, it acquired an 80 per cent stake in Spanish sun shades label Meller.
Whereas Lenskart’s international attain offers it entry to higher-margin markets, it additionally heightens its publicity to provide chain dangers – significantly as a consequence of its reliance on imports from China, the place it holds a 51 per cent stake in a three way partnership that manufactures frames.
“Rising nationalism, protectionist insurance policies, or shifts in buyer sentiment towards merchandise related to Chinese language provide chains may additional cut back demand. If we’re unable to handle these dangers, or adapt to evolving market circumstances, our enterprise, outcomes of operations, and monetary situation might be affected,” the DRHP stated.
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In some excellent news, China’s share in Lenskart’s uncooked materials imports has declined – from 54 per cent in FY23 to 42 per cent in FY25. In the present day, 98 per cent of its prescription eyewear is manufactured in Gurgaon and Bhiwadi, with the remaining produced in Singapore and Dubai. A brand new Rs 1,500-crore greenfield facility for optical glasses close to Hyderabad can also be within the works.