Lenskart, India’s leading omnichannel eyewear retailer, has posted a 43% growth in revenue for the fiscal year 2024, reaching Rs 5,427 crore, but it faced a slower pace
Lenskart, India’s leading omnichannel eyewear retailer, has posted a 43% growth in revenue for the fiscal year 2024, reaching Rs 5,427 crore, but it faced a slower pace of growth compared to the previous year. Despite its continued success in terms of revenue, the company reported a small loss of Rs 10 crore, showing its careful efforts to balance growth and cost management.
In this article, we’ll break down Lenskart’s financial performance, its global expansion strategy, and the factors contributing to its current results.
Lenskart’s revenue from operations saw a 43% year-on-year increase, totaling Rs 5,427.7 crore for FY24, up from Rs 3,788 crore in FY23. While this is impressive, it’s worth noting that it is a slower growth rate compared to the 2.5X jump the company experienced in FY23.
A large chunk of Lenskart’s revenue comes from the sale of eyewear products. In FY24, the company earned Rs 5,166.2 crore from selling eyewear frames, lenses, goggles, and related products, marking a 43.1% increase from the previous year. This product sale accounted for 95.18% of the total revenue in FY24, proving that eyewear continues to be the backbone of the business.
Apart from product sales, Lenskart also made money through services like eye checkups. The income from services rose by 26.4%, bringing in Rs 104.5 crore. In addition, other operating sources (such as franchise fees or online sales) contributed Rs 157 crore to the revenue.
What’s particularly noteworthy about Lenskart’s FY24 performance is its strong international presence. Of the total revenue, 42% (around Rs 2,273 crore) came from markets outside India, including countries like Japan, Singapore, Taiwan, and Thailand. This indicates that Lenskart is not only dominating the Indian eyewear market but also making significant strides in international markets, strengthening its position globally.
While Lenskart continues to grow, the company has had to navigate increasing operational costs. Here’s a breakdown of the major expense categories:
Despite these rising costs, Lenskart managed to limit its losses considerably.
Lenskart’s loss in FY24 was only Rs 10 crore, a massive 84% reduction from the Rs 63 crore loss reported in FY23. This indicates that the company is better managing its costs while expanding its operations. Lenskart’s EBITDA margin stood at a healthy 15.25%, while the Return on Capital Employed (ROCE) was 2.28%, showing that the company is still in the growth phase but managing its profitability wisely.
On a unit basis, Lenskart spent Rs 1.02 to earn Rs 1 in operating revenue in FY24. This is an improvement over previous years, reflecting the company’s growing operational efficiency and ability to manage costs effectively.
In June 2024, Lenskart secured $200 million in secondary funding, followed by another $20 million investment, bringing its total raised capital to almost $1 billion over the past 18 months. The company was valued at $5 billion during the secondary transaction, and recently, its early investor Fidelity boosted its valuation to $5.6 billion.
Lenskart’s strategy is clearly focused on growth—both in India and overseas markets. The company operates more than 2,500 stores worldwide, with around 2,000 stores in India. Despite the increase in competition from other eyewear brands, Lenskart’s strong online and offline presence continues to give it an edge.
By expanding its store network and pushing into international markets, Lenskart is positioning itself as a global eyewear leader. The company plans to continue focusing on technology-driven services such as online consultations, AI-powered fittings, and a wider range of eyewear products to improve customer experience and retain market leadership.
Lenskart has had another strong year in terms of revenue growth, reaching Rs 5,427 crore in FY24, a 43% increase from the previous year. While the pace of growth was slower than last year’s 2.5X leap, the company’s efforts to control costs and improve operational efficiency have helped narrow its losses to just Rs 10 crore.
Lenskart’s expansion into international markets, along with its growing store network and technology-driven services, signals the company’s long-term ambition to become a global leader in the eyewear market.
With a solid financial foundation, backed by strong investments and a $5.6 billion valuation, Lenskart seems poised to continue its growth trajectory in the coming years, overcoming challenges and capitalizing on new opportunities in the eyewear sector.
