Lenskart leans into small-town India as IPO nears
Offline retail now contributes to approximately 75% of Lenskart’s income, and the store distribution has changed in favor of smaller markets.
As of the FY25, there were categories defined separately in the company’s Tier – 2 and beyond 698 stores, 469. Among the subways are India’s largest cities such as Delhi, Mumbai and Bengaluru; Tier – 1, Jaipur, Lucknow and Indore, such as secondary but large cities; Tier – 2 and beyond small towns and rural places.
According to DRHP, these small markets are now 34% of Lenskart’s domestic footprint.
Betting on lower burns, faster start
Lenskart’s expansion pressure reflects a wider change in the geography of Indian consumer demand.
Smaller towns of India are becoming more suitable retail markets due to increasing income and digital adoption. According to a joint study by RBI Innovation Hub and Boston Consulting Group, according to a joint study by Rural and semi-urban India, RBI innovation Hub and Boston Consulting Group, according to a joint study conducted by HUB and Boston Consulting Group, it contributes to approximately 47% of GDP.
The opportunity for Lenskart is not only requested, but also lies in a cost -advantage and competitive and white area.
“Tier-2 positions sometimes offer 40-60% lower rents, so reaching with a gratitude in these markets faster than 1st stage,” he said.
“Almost 75% of its sales come from offline stores and at least 75-80% of its orders are below. La10,000 falls about 60% La2,000 to La10,000 range-this is their main pricing group, Dat Datum Intelligence Founder Satish Meena said.
Meena, “Metrodes in the market is more competitive,” he added. “There is an open tendency to premiumization – customers who want to spend customers La10,000 and above usually look at global brands, which makes it difficult for Lenskart to stand out. “
Meena, “Metrodes in the market is more competitive,” he added. “There is an open tendency to premiumization – customers who want to spend customers La10,000 and above usually look at global brands, which makes it difficult for Lenskart to stand out. “
It covers the expansion costs
Lenskart added 1,215 stores in the last two years and expanded its footprint by 81%. It started with 1.508 stores in 23 financial years and ended in 2,723 to 25 financial years, including international stores.. It only opened 445 new stores in FY25 and closed 111, which resulted in a clear addition of 334 stores. Store closures remained modest for all years – in the 6723 financial year and in 59 financial years.
This expansion appears on the rent bill.
Rental costs more than twice LaIn 23 financial years in 595 million La1,398 million. Total rental obligations LaAs of March 31, 2025, it increases 22.268 million and 54% for two years. The rent remained at a modest 2.1% of the total expenses, but increases fixed costs associated with the launch of jump signals aggressively offline.
Other players in the organized glasses segment are expanding with changing strategies.
For example, Titan Co.’s glasses work Titan Eye+, was produced La796 Crore, which earned income in 25 financial years with an increase of 10% compared to the previous year LaAccording to Titan’s FY25 activity report, the segment abdomen before financial costs and taxes is 85 Crore. The company runs more than 900 stores in 350 cities.
In the mid -2024, it continued to expand and launched a premium format for sunglasses. However, Titan said in his report that “e-commerce is the second most important driving force for the Eyecare section, because it aims to share a market share of up to 10% in premium glasses.
In addition, the discovery of online glasses among younger, urban consumers increases, while prescription purchases continue to be largely offline.
As of FY25, Lenskart’s prescription glasses contributed to less than 5% of Lenskart’s prescription glasses sales due to digital channels, lack of tactile trial and defective digital trials.
The company’s offline stores now generate an annual average income of a country of 1.65 million square meters. La23.492 per square meter in FY25.
Seemingly public offering
Lenskart plans to raise LaWhile the current investors want to sell 132.3 million shares with their sales offer, 2,150 Crore in the new capital is in fresh capital. The company is reported to be aimed at a valuation of $ 8-9 billion.
Lenskart sent at FY25 La6,652 CRORE IN Business Revenue, La5.427 crore a year ago. Made a clear profit La297 Crore after La10 Crore loss in FY24.
According to Redseer’s FY25 report on the glasses market, organized glasses retail penetration in India remains around 24%. Local -free stores still leave the segment and leave an important space for branded expansion.
The queries sent to the company did not answer until the press time.
