Business
Peyush Bansal Plans to Buy 1.5–2% More of Lenskart Ahead of IPO
Gurugram, July 2025 – Lenskart co-founder and CEO Peyush Bansal is reportedly set to acquire up to a 2% additional stake (~₹1,200 crore / USD 150 million) from existing investors, including SoftBank, Chiratae, TR Capital, and Kedaara, ahead of the eyewear giant’s planned $10 billion valuation IPO .
Key Developments
➤ Deal Structure & Valuation
- Negotiations suggest a $7–8 billion valuation, significantly below the IPO target, consistent with a trend of founders buying back equity at discounted prices
- Bansal already owns ~4%; acquiring another 1.5–2% would raise his holding to ~6%
➤ Funding the Buyback
- He is reportedly arranging a ₹200 crore (USD 24m) loan to facilitate the purchase
➤ IPO Context
- Lenskart plans to file its Draft Red Herring Prospectus (DRHP) within weeks, targeting a $1 billion IPO at a $10 billion valuation
- The company’s last secondary funding in June 2024 valued it at $5–6.1 billion
🛠 Strategic & Market Implications
| Factor | Insight |
|---|---|
| Founder Confidence | By increasing his stake, Bansal signals strong faith in Lenskart’s future and aligns his personal returns with public investors. |
| Common Pre-IPO Tactic | Founders like those of Swiggy and Zomato have boosted their ownership ahead of listing to counter dilution |
| Valuation Gap | Buying at a 20–30% valuation discount might appeal to insiders yet reflects market caution at this $7–8 billion mark vs. IPO hopes. |
| Board Support | Share buybacks or equity grants pre-IPO help retain and incentivize top leadership amid heavy dilution from global fundraising. |
Lenskart at a Glance
- Revenue & Losses: ₹5,427 crore in FY24 with a slim loss of ₹10 crore
- Global Presence: Over 2,500 stores across India, UAE, Singapore, Japan; manufacturing capacity scaled to India
- Investor Heritage: Backed by SoftBank, Temasek, Fidelity, ADIA, ChrysCapital, among others. ADIA took a 10% stake ~two years ago
Why It Matters
- Investors & Employees: Insider buyback may instill confidence among retail investors and employees participating in ESOPs.
- Market Signal: A solid leadership conviction before public listing can influence IPO subscription and price discovery.
- Trend in Sector: Mirrors a pattern in other Indian tech IPOs, shifting the narrative from dilution to founder alignment.
