MUMBAI: Lenskart is looking to build a war chest for AI investments by tapping public markets as the technology is rapidly changing the way people shop, transact and consume. The SoftBank-backed startup is set for a debut on Dalal Street on Nov 10, joining new age peers such as Urban Company and Ather. The Gurugram-based startup is targeting a valuation of about $8 billion at the upper end of the price band set at Rs 402 per share, about 60% higher than its last (funding) valuation of $5 billion in June 2024. At the upper end of the price band, Lenskart’s total IPO size is Rs 7,278 crore of which Rs 2,150 crore will be raised through a fresh issue of shares. SoftBank, and Temasek are among the selling shareholders with an ‘offer for sale’ component of up to 12.7 crore shares. The founders will hold close to 20% in the company after the IPO. AI is going to change more (of everything) than what was anticipated, co-founder & CEO Peyush Bansal said. “The biggest trigger for IPO for me was AI. With AI, the world is going to change in the coming few years… going public gives you scale and the access to bring the best of talent on board. Today, we are not just in India, we are in Asia, Middle East and we want to keep raising the bar. Also, as a company, we were ready. There are significant profits and cash-generation in the company,” Bansal told TOI here. “Sooner or later, this is the right time to build credibility with our new set of investors who are going to be partners with us,” Bansal said. Going public allows a company to raise funds through various routes and broadens the accessible pool of capital. The IPO opens for bidding on Oct 31. Powering its manufacturing plants with automation and robotics has allowed Lenskart to lower its costs and price its products 35-40% cheaper than rivals. It is betting on AI to offer virtual try-ons, and self-eye test interfaces.
