Lenskart IPO falters on debut raising questions on startup valuations
Lenskart Solutions Ltd., the eyewear retailer backed by SoftBank Group Corp., experienced a significant drop in its Mumbai trading debut, falling as much as 12% to 355.70 rupees. This initial performance occurred after the company successfully raised 72.8 billion rupees ($821 million) through its initial public offering (IPO), reigniting discussions about the sustainability of the often-soaring valuations of Indian startups.
The company, founded by "Shark Tank India" judge Peyush Bansal, had attracted considerable investor interest, with its IPO subscriptions oversubscribed by 28 times the shares on offer, largely driven by institutional investors. Despite this strong demand, Lenskart was valued at an exceptional 238 times its earnings from the last fiscal year. Its challenging first day on the market positions it for the worst opening performance for an IPO of its size in India this year, according to data compiled by Bloomberg.
The high valuation of Lenskart's IPO had already drawn considerable social media criticism prior to its listing. This prompted DSP Asset Managers Pvt., a prominent investor, to publicly defend its stake, affirming that Lenskart’s business model is "strong and scalable," even while conceding that the deal was "expensive."
Lenskart's debut unfolds against a backdrop of India's strengthening position as a global fundraising hub. The country benefits from deep domestic liquidity and a rapidly expanding base of retail investors, making it the world's fourth-busiest IPO market this year. Investors are increasingly drawn to India, seeking exposure to its burgeoning consumer economy, with Indian debuts having raised approximately $16 billion so far in 2025.
Following its IPO, Lenskart commands a substantial valuation of roughly 700 billion rupees. This figure places it higher than several well-established consumer companies in India, including Colgate-Palmolive India Ltd., United Breweries Ltd., Page Industries Ltd., and one of Procter & Gamble Co.’s Indian units, further highlighting the ambitious pricing.
The list of significant investors in Lenskart’s IPO includes a diverse range of global financial institutions. Notable participants include funds from JPMorgan Chase & Co., Nomura Holdings Inc., Amundi SA, and HSBC Holdings Plc, alongside the government of Singapore, underscoring the international confidence in the Indian market, despite the immediate post-listing challenges for Lenskart.
