CHENNAI: SBI Mutual Fund has invested Rs 100 crore in eyewear retailer Lenskart at an enterprise valuation of around $7.7 billion (approximately Rs 70,000 crore), marking one of the largest pre-IPO investments by a domestic institutional investor in a new-age consumer company. The transaction was executed through SBI Mutual Fund’s Alternative Investment Funds — SBI Optimal Equity Fund and SBI Emergent Fund — at a share transfer price of Rs 402 per share, according to regulatory filings.
The investment comes as Lenskart prepares for its initial public offering, expected to include a fresh issue of around Rs 2,150 crore along with an offer-for-sale by existing shareholders. The company’s valuation in this latest deal represents a sharp increase from about $5 billion reported during previous funding rounds in 2024, underlining growing investor confidence in its growth trajectory and profitability.
Lenskart, led by co-founder Peyush Bansal, has evolved into one of India’s largest eyewear retailers, operating both online and through over 2,500 stores across India and overseas. The company reported a net profit of Rs 297 crore in FY25, compared with a loss in the previous year, while revenue grew by about 23 percent to Rs 6,653 crore. The strong financial performance and expansion in international markets have made Lenskart one of the most valuable consumer internet companies in India’s startup ecosystem.
For SBI Mutual Fund, the investment reflects a strategic move to participate in high-growth, tech-driven consumer businesses ahead of their market debut. By entering at the pre-IPO stage, the fund aims to capture potential listing gains and long-term value appreciation once Lenskart hits the public market.
A couple of markets analysts said in their reports that this deal is a confidence booster for India’s upcoming IPO pipeline, especially among technology and consumer-facing startups. The investment also signals strong domestic institutional appetite for new-age businesses, traditionally dominated by global private equity and venture capital funds.
However, the elevated valuation implies high expectations for sustained growth and profitability. Market experts caution that execution risks—such as managing rapid store expansion, maintaining margins, and facing intensifying competition from global and domestic players—remain key challenges. Moreover, overall IPO market conditions will play a crucial role in determining post-listing performance.
