Lenskart’s FY23 Sales Jump by 150% Towards INR 4,000 Cr Milestone

Lenskart, led by Peyush Bansal, saw a significant surge in sales as it approached the INR 4,000 Cr milestone for the financial year ending on March 31, 2023. The Delhi-NCR based startup disclosed sales figures of INR 3,788 Cr for the fiscal year 2022-23 (FY23), marking a remarkable 152% increase from the previous fiscal year’s INR 1,502.7 Cr.

The company primarily thrived on the sale of eyewear products, contributing to 95% of its total revenue. Notably, revenue from this segment skyrocketed by 154.6% to reach INR 3,609.8 Cr during the period under review, compared to INR 1,417.7 Cr in FY22.

Related: Lenskart’s CEO Peyush Bansal Suggests to Focus on Problem Areas but Not on Channels for Business Development

Established back in 2010 by Bansal, Amit Chaudhury, and Sumeet Kapahi, Lenskart has emerged as a leading eyewear retailer that caters to customers both online and offline, gaining traction not only in India but also in places like Singapore and the UAE. According to Lenskart, their loyal customer base in India has reached an impressive 20 million.

Lenskart’s overall revenue, when considering all income sources, hit INR 3,927.9 Crores, marking a significant surge of 142.7% compared to the previous fiscal year’s INR 1,618.3 Crores.

Moreover, there’s good news on the financial front: despite challenges, the net loss decreased by 38% to INR 63.7 Crores in the review period, down from INR 102.3 Crores in the preceding fiscal year.

The startup’s total expenses increased by 133% to INR 4,025 Cr in FY23 from INR 1,726 Cr in the previous fiscal year.

Procurement Expenses: Wow! The startup really invested big in procurement, shelling out a whopping INR 1,368 Cr, which made up 34% of its total spending. That’s a hefty 128% jump from the INR 599.6 Cr it splurged in FY22.

Employee Benefits: Talk about taking care of your team! The startup nearly tripled its spending on employee benefits, reaching INR 717.5 Cr in FY23, compared to just INR 245.2 Cr in the previous year. These benefits cover everything from salaries to contributions for PF, showing a commitment to employee well-being.

Advertising Splurge: Looks like the startup is serious about getting its name out there! It dished out INR 293.8 Cr on advertising in FY23, a solid 25% increase from the INR 234.6 Cr spent in FY22.

In the fiscal year 2023, Lenskart saw a substantial rise in its earnings before interest, tax, depreciation, and amortization (EBITDA), reaching INR 403.7 Cr compared to just INR 1 Cr the previous year. This boost led to an expansion in the EBITDA margin, which grew from a mere 0.06% in FY22 to a notable 10.6%.

It’s noteworthy that Lenskart secured a hefty $600 Mn in funding from Chrys Capital and Abu Dhabi Investment Authority (ADIA) last year, even amidst the challenging funding climate. This investment was made at a valuation of approximately $4.5 Bn, signaling confidence in the company’s potential.

Currently, Lenskart is in discussions to further bolster its funding by $200 Mn from Temasek and Fidelity, through a secondary sale. This move could potentially value the startup at $5 Bn. Additionally, early investors such as TR Capital, KKR, and Avendus are contemplating selling portions of their stakes in Lenskart.

Lenskart, under the leadership of Peyush Bansal, demonstrated phenomenal growth with sales soaring to INR 3,788 Cr in FY23, primarily propelled by eyewear products. Revenue surged to INR 3,609.8 Cr, comprising 95% of total revenue. The company’s overall revenue reached INR 3,927.9 Cr, marking a significant increase. Despite challenges, net losses reduced by 38%, while expenses soared, notably in procurement and employee benefits. Lenskart strategically invested in advertising, leading to remarkable EBITDA growth. The company’s successful funding rounds and valuation signify robust confidence in its future prospects.