Online eyewear firm Lenskart plans to launch its initial public offer within next three years to create value and provide an exit option to existing shareholders. "As the company grows, we see IPO will create more value for everybody. We are building values with various investments in technology development in the eyewear segment and from IPO will chart out our growth path. We expect to launch it in next three years," Lenskart Founder and CEO Peyush Bansal told reporters.
Lenskart expects to register 100 per cent revenue growth at around Rs. 600 crore by the end of current fiscal. The company has till date raised around Rs. 700 crore from various sources with private equity investment TPG Global being one of the lead investors.
He said that the company does not require any immediate funding but listing in the market will make the company's position stronger and an option for existing investors to exit. "We are growing 100 per cent year-on-year. Last year, it was around Rs. 300 crore and this fiscal we expect Rs. 600 crore. We are operationally in profit. In next six months, we will be EBDITA positive. Investors have smooth exit option at present also. IPO will provide them another option," Bansal said.
Lenskart mostly sells its own products from its online platform.
The company has the presence across 90 cities and is looking to expand across more tier-2 cities next year including Coimbatore, Lucknow, Ahmedabad, Surat, Kanpur, Chandigarh, Guwahati, Bhubaneswar, etc. "Our strategy is to give brand experience in India's eyewear market which is 90 per cent dominated by unorganized businesses.
Out of estimated size of Rs. 20,000 crore eyewear market, only 10 per cent of business is done by organized players. To reach out our target consumers, we are focusing and investing on technologies," Bansal said.
He said that the company is investing Rs. 50-60 crore every year on technology development.
"We have created 3D try on service at Lenskart which is being used by 6,000-7,000 people daily on their mobile phone to check frames that will suit them. Now we are working on technology to bring eye-check up on our app without any attachment to mobile phones. We want to go 100 per cent on mobile," Bansal said.
The company has been making lenses for eyewear and is now setting up the manufacturing unit for frames at Manesar in Gurgaon district.
"We are investing around Rs. 60 crore in setting up manufacturing unit. This will be one of the largest eyewear manufacturing facility in South East Asia," Bansal said. He said that the company is also expanding its offline presence from 300 stores at present to 500 by the end of this year.