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Lenskart’s Bold $200 Million Investment: Aiming for Global Expansion and Enhanced Manufacturing Capacity

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Lenskart, the omnichannel eyewear brand, is set to invest $200 million in a new manufacturing unit in southern India. This facility will be ten times larger than its existing Rajasthan plant, contributing to Lenskart’s revenue run-rate of $1 billion for the current fiscal year.

CEO Peyush Bansal noted that for the first time in the company’s history, online growth is surpassing that of the last decade. Lenskart’s commitment to local manufacturing has enhanced its operational efficiency, enabling next-day delivery in eight cities—a significant improvement from previous delivery timelines. Bansal emphasized that controlling the entire supply chain, from manufacturing to delivery, has been crucial to their success.

The new plant is anticipated to become operational in 18 months, reinforcing Lenskart’s position as a global eyewear manufacturing hub, targeting markets in Japan, Southeast Asia, and the Middle East. With backing from major investors, Lenskart has doubled its FY23 revenue to ₹3,788 crore and aims to surpass $1 billion in FY25.

Bansal highlighted that Lenskart’s omnichannel strategy—combining online and physical retail—has driven expansion, with plans to open an additional 400 stores this year. The firm’s innovations, such as tech-driven customer experiences and a robust online platform, have resulted in a net promoter score rising from 65 to over 80, reflecting improved customer satisfaction.

With over 75% of the population still needing spectacles, Lenskart sees significant growth potential. Recently, the company launched “Cooper,” a kids’ eyewear brand, and an innovative product called “Creator,” designed for children with myopia. Bansal stated, “This is probably the most technically innovative product we’ve ever developed,” targeting the rising awareness of vision problems among younger demographics.

While Lenskart is expanding its core business, it has also made strategic acquisitions, including Japan’s Owndays in 2022. However, Bansal mentioned that they are not actively seeking further acquisitions at this time.

As for a potential IPO, Bansal expressed no rush to go public, stating that Lenskart will pursue this when the company is ready, independent of market conditions. The firm has successfully delivered over $600 million to investors in the past year, with significant investments at a $5 billion valuation.

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