The road to an Initial Public Offering (IPO) is rarely a smooth ride, but for eyewear giant Lenskart, the path is being paved with significant endorsements from some of India’s most respected investors. As the company gears up for its much-anticipated public debut, it has successfully secured a major pre-IPO capital injection, with billionaire investor and Avenue Supermarts (DMart) founder Radhakishan Damani and institutional behemoth SBI Mutual Fund (MF) leading the charge.
The news, initially reporting that these two giants were set to pick up shares worth approximately ₹200 crore, split equally between them (around ₹100 crore each), serves as a powerful validation of Lenskart’s business model and financial turnaround. While recent reports have quoted Damani’s final investment figure around ₹90 crore, the overall message remains clear: the smart money is betting big on Lenskart.
The Significance of Marquee Investors
The participation of Radhakishan Damani, often referred to as India’s ‘retail king’ and one of the country’s most respected value investors, is particularly noteworthy. His investment is not just about capital; it’s a strategic endorsement of Lenskart’s omnichannel retail model—a combination of a strong online presence and an extensive network of over 2,700 physical stores across India and overseas. For Damani, whose retail empire DMart is known for its strong fundamentals and focus on value, investing in a tech-enabled, consumer-centric, and profitable business like Lenskart suggests confidence in its long-term market dominance.
Similarly, the involvement of SBI Mutual Fund—one of India’s largest and most conservative institutional investors—lends immense credibility. Following its earlier strategic investment in Urban Company, SBI MF’s move into Lenskart marks a continued institutional expansion into the profitable segment of India’s new-age, digital-first consumer ecosystem. This institutional backing typically helps anchor the IPO and signals stability to the broader public market.
Lenskart’s Financial Fuel for Future Growth
The confidence demonstrated by these investors is firmly rooted in Lenskart’s remarkable financial performance and its aggressive growth strategy. The company has successfully shed its loss-making tag, reporting a substantial net profit of ₹297 crore in FY25, a powerful turnaround from a ₹10 crore loss in the previous fiscal year. Revenue also surged by over 22% year-on-year to approximately ₹6,652 crore. This achievement of scale-with-profitability is what separates Lenskart from many other new-age tech companies and makes it highly attractive to investors who prioritize value and robust business models.
The funds raised, both from the pre-IPO placement and the forthcoming fresh issue (₹2,150 crore), are earmarked for aggressive expansion:
- Store Expansion: Capital expenditure for setting up new company-owned and operated (CoCo) stores across India.
- Tech & Innovation: Major investments in technology and cloud infrastructure to drive AI-powered innovations like phone-based eye tests and smart eyewear solutions.
- Marketing: Intensified brand marketing and awareness initiatives to solidify its leadership position.
- Global Push: Strengthening its growing international presence, which already contributes significantly to its revenue.
The Unlisted Market Pulse and the Role of WWIPL
While Lenskart’s official IPO, which also includes a sizable Offer for Sale (OFS) of around 13.2 crore shares by existing shareholders, will take place on the public exchanges, the groundwork for these high-profile placements often happens in the unlisted shares market. This is where platforms, including those operated by entities like WWIPL (Wealth Wisdom India Private Limited), play an important, albeit secondary, role in the overall IPO ecosystem.
The trading of Lenskart’s unlisted shares on platforms accessible through firms like WWIPL has been a constant buzz, serving as a real-time thermometer for market sentiment.
- Valuation Benchmark: The price movements of Lenskart’s unlisted shares tracked by platforms like WWIPL reflect the growing demand among High-Net-Worth Individuals (HNIs) and family offices, effectively setting a valuation benchmark and creating momentum for the potential $8-$10 billion valuation Lenskart is targeting for its listing.
- Liquidity Facilitation: While the strategic investment by Damani and SBI MF is a direct, formal pre-IPO placement, the general pre-IPO market, supported by firms like WWIPL, creates the necessary liquidity and trading interest that validates the company’s share price before it hits the formal public domain. It allows early investors or employees (via ESOPs) to realize partial liquidity and gives sophisticated investors an early-entry opportunity.
To buy or sell unlisted shares and for price inquiries, you can contact the dealing desk at WWIPL on the dedicated line: +91-9201957010.
The entire process—from the initial buzz in the unlisted market to the final anchoring of the pre-IPO round by giants like Damani and SBI MF—underscores a rare consensus on Lenskart: it is a high-growth, technology-enabled retail story that has achieved the critical milestone of sustained profitability. The stage is set for a landmark public debut in the coming months.