In a significant endorsement of its robust growth and market leadership, omnichannel eyewear retailer Lenskart has seen its valuation marked up to an impressive $6.1 billion by a fund managed by US-based financial services giant Fidelity. This latest valuation, effective as of April 30, represents a substantial 21% increase from the $5 billion valuation at which Fidelity acquired shares in the company.

The valuation surge comes as Lenskart actively prepares for a highly anticipated Initial Public Offering (IPO), with reports suggesting an ambition to raise $1 billion at a staggering $10 billion valuation. The move by Fidelity, a prominent global investor in both public and private companies, highlights Lenskart's strong financial performance and promising future outlook.

Lenskart's financial health has been steadily improving. In the fiscal year 2024 (FY24), the company significantly narrowed its net loss to just ₹10 crore, a remarkable reduction from ₹64 crore in FY23. This improved profitability is attributed to enhanced technology-driven operational efficiencies. Concurrently, operating revenue soared by 43% to ₹5,428 crore, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) more than doubled to ₹856 crore, showcasing the company's ability to scale efficiently.

The omnichannel eyewear retailer has been on an aggressive growth trajectory, marked by strategic acquisitions and global expansion. In 2022, Lenskart acquired a majority stake in Japanese eyewear brand Owndays, a move that significantly bolstered its presence across Asia. More recently, its subsidiary Neso Brands also acquired a stake in Paris-based Le Petit Lunetier, further solidifying its international footprint. The company operates over 2,500 stores, with approximately 2,000 in India, complemented by a strong online and mobile application presence.

Lenskart has been a consistent recipient of significant investment. Last June, the company closed a $200 million secondary round at a $5 billion valuation, attracting investments from Singapore's sovereign fund Temasek and Fidelity. This followed a $600 million round in March 2023, which saw participation from the Abu Dhabi Investment Authority and ChrysCapital, valuing Lenskart at $4.5 billion. Founders Peyush Bansal, Neha Bansal, Amit Choudhary, and Sumeet Kapahi also demonstrated their confidence in the company's prospects by investing nearly $20 million in July 2024.

The recent transition of Lenskart from a private to a public limited company (now Lenskart Solutions Limited) further underscores its readiness for a public listing. This legal transformation is a crucial step towards filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

Industry observers view Fidelity's increased valuation as a strong indicator of investor confidence in Lenskart's business model, its ability to disrupt the traditional eyewear market through its click-and-mortar strategy, and its consistent financial improvements. As Lenskart gears up for its IPO, the marked-up valuation provides a significant boost, setting a positive precedent for its public market debut and solidifying its position as a leading player in the global eyewear industry.