Peyush Bansal’s vision: Building Lenskart’s billion-dollar empire

Welcome to the mesmerising realm of Lenskart, a revolutionary force transforming the eyewear market. With its disruptive approach and commitment to customer satisfaction, Lenskart has redefined the way we perceive and purchase eyewear. 

This Lenskart case study is an exciting expedition into the heart of the company’s operations, unravelling the strategies, hurdles, and victories that have sculpted its remarkable success story.

Lenskart company overview

In 2010, an ambitious former Microsoft employee, Peyush Bansal, embarked on a journey to transform the eyewear industry. With no financial backing but a relentless drive to make a difference, he co-founded Lenskart, which is now one of the fastest-expanding businesses in the eyewear sector.

Peyush, Amit Chaudhary, and Sumeet Kapahi established the company VALYOO Technologies. Their goal was to add real value to customers’ lives by bypassing retailers, establishing their own high-quality manufacturing, and delivering directly to the consumer.

The utilisation of in-house robotic lens manufacture and assembly for 100% precision supported this approach, which not only lowered costs but also guaranteed the delivery of top-quality products.

Today, Lenskart is a rapidly growing enterprise, reaching over a month.

With over 100,000 consumers every month, Lenskart is now a booming business. It has achieved this through a unique blend of a robust online presence and innovatively designed physical stores. Bringing about a sea change in the eyeglasses industry, Lenskart is more than simply a business.

Lenskart investor information

Source: Business Outreach

Lenskart- The mission and vision

At Lenskart, the steadfast mission is to democratise access to high-end designer eyewear for everyone in India, thereby eliminating the financial barriers often linked with luxury items.

The company’s vision, as stated on the official website, is to ensure that eyewear becomes a tool for personal growth and well-being. Lenskart envisions a future where eyewear has the power to transform lives, shaping vision and quality of life with remarkable success.

Lenskart’s owner, Peyush Bansal, champions a unique business strategy focused on problem-solving and meeting market needs rather than on specific channels. The omnichannel model’s viability in the future is something he doubts.

Bansal emphasises understanding and addressing customer pain points, a philosophy reflected in Lenskart’s evolution. He encourages entrepreneurs to stay adaptable in a rapidly changing market and stresses the importance of continuous innovation. 

Lenskart market analysis

Products in the eyewear industry include spectacles, goggles, and other eye protection gear, and the market for these items is always expanding and changing. Here’s an overview:

Forecasts indicate that the eyeglasses market will expand at a substantial rate over the next few years. At a CAGR of 5.08%, the worldwide market is predicted to grow from $178.98 billion in 2024 to $229.35 billion in 2029.

The below graph highlights the key drivers influencing the eyewear industry’s market value. 

Source: Statista

It underscores the importance of economic factors like GDP growth and inflation, the role of e-commerce, and the impact of geopolitical events. It also points to the influence of medical advancements such as eye-corrective surgery on the industry.

As of 2024, Lenskart has established itself as a prominent player in the eyewear industry, but it faces competition from various other companies.

Now, let’s turn our attention to the company’s competitors:

Source: Business Outreach

Lenskart business model

Lenskart’s revenue is derived from multiple channels. The predominant revenue stream is the sales of various eyewear items, encompassing frames, lenses, sunglasses, and contact lenses. The business takes pride in its wide range of products, which are tailored to fulfil the needs of a varied clientele that spans generations and tastes.

Additionally, Lenskart augments its earnings through subscription services. One such service is Lenskart Gold, a subscription plan that offers subscribers a host of exclusive perks, including complimentary eye examinations, home visits for eye check-ups, and attractive discounts on eyewear products.

But is lenskart profitable?

The Lenskart net worth is a testament to the brand’s success, with Bansal’s 8.21% equity in the company being valued at a staggering ₹2500 crore. This figure is part of the broader Lenskart valuation which stands at an impressive ₹32,000 crore, highlighting the company’s substantial market presence and financial strength.

In FY23, Lenskart experienced a substantial financial upswing, with operational revenue soaring to ₹3,788 crore, a notable increase from ₹1,502 crore in FY22. This growth is largely due to robust eyewear sales, with India accounting for 59% of total revenue. 

The rest is generated from its global footprint in markets such as Singapore, Dubai, the US, and Southeast Asia. Furthermore, Lenskart’s non-operating income, encompassing interest and other diverse sources, added ₹140 crore, elevating its total income to ₹3,928 crore.

Source: Economic Times

Marketing and growth strategies

Lenskart’s AI marketing strategy is fundamentally designed to improve customer experience and accessibility. The company employs 3D AI technology in its app, enabling customers to virtually try on a variety of frames. This functionality removes the necessity for a visit to a physical store, thereby simplifying the process of choosing frames. This innovation has significantly boosted customer engagement, with the app recording over 20 million downloads.

Moreover, Lenskart’s ‘Nazar Ghati, Durghatna Ghati’ campaign made use of augmented reality to develop a series of advertisements emphasising the repercussions of poor vision. The campaign’s success was marked by a threefold increase in Augmented Reality usage, underscoring the effectiveness of incorporating AI into marketing strategies to engage and resonate with customers. 

Lenskart’s dedication to customer-centricity is further exemplified in its collaboration with Tango Eye, an AI video analytics solution that enhances sales, efficiency, and security in physical stores while preserving customer privacy.

Challenges and solutions

Lenskart, just like any other business, has encountered its fair share of obstacles on its journey towards success. 

In the beginning, there was a hesitation among consumers to purchase glasses online, stemming from uncertainties about how well the glasses would fit and the quality of the products.

To address these concerns, Lenskart rolled out a ‘Try at Home’ option along with an interactive 3D trial tool accessible through their online platforms. These services empowered customers to experiment with various frame styles in a virtual environment, enabling them to select frames that perfectly matched their preferences and facial features.

Bottomline

Lenskart’s odyssey in the eyewear industry is a shining example of innovation, tenacity, and a focus on customer needs. Starting as a modest venture in 2010, Lenskart has now emerged as a dominant player, challenging conventional norms and reshaping India’s eyewear market.

The company’s dedication to making high-quality eyewear accessible to all, along with its mission to leverage eyewear as a means for personal development and wellness, mirrors its overarching future vision.

As Lenskart continues to tackle obstacles and seize opportunities, its robust financial standing, diverse product range, and inventive marketing approaches equip it for ongoing growth and influence.