Lenskart - How a Startup Became India’s Leading Eyewear Company?

     

"It's not what you look at that matters, it's what you see that does."

Lenskart needs no introduction as it is a recognized eyewear brand since its launch in 2010. It is an eyewear retail chain that operates as an eCommerce marketplace for prescription power glasses, BLU glasses, frames, and goggles. It has 500+ outlets in over 40 Indian cities as of September 2020. Lenskart has a B2C business model which is highly sales-oriented. They sell their product directly to customers at an affordable price.

 

Source: Startup Hyderabad

About the Founders

If you are watching Shark Tank India, you must be knowing the CEO of Lenskart as one of the sharks. He is one of the most cherished and followed people from the show.

Lenskart was founded by Peyush Bansal, Sumeet Kapahi, and Amit Chaudhary. Peyush Bansal is the CEO and creator of Lenskart's parent business, Valyoo Technologies. Peyush Bansal worked to develop several Indian firms, including John Jacobs, AQUALENS, and Lenskart, under which he established Lenskart Vision Fund and Lenskart Plus, all of which cater to the spectacles and lenses sector. 

Flyer's business was gaining traction, so he decided to try his luck in India, launching Lenskart in November 2010. Initially, it started selling off solely contact lenses, but after a few months, it expanded to include eyeglasses. Later it added sunglasses to its repertoire

What is Their Business Model?

Its business model makes the company distinct because it bridges the gap between different touch points as customers can order from the store or online. The company is recognized as a unicorn prescription eyewear company. Customers can buy online at www.lenskart.com or in person at their nearest stores. The franchise model was also in place to crush scepticism among consumers about purchasing the products online and earning their trust.

Widest Section of Customers

The hybrid Lenskart model ensured the utmost outreach for the brand to cater to the varied demands of consumers of all ages by ensuring a vastly convenient buying mode. It caters to an enormous section of the audience, and the business model assists to generate brand conviction among offline users. As the brand becomes more reliable to offline buyers, they would have the option of buying the products online if they want.

The Lenskart franchise is an example of the company’s efforts to provide customers with the most suitable and comfortable buying experience. The company could take the business to customers' doorsteps by operating through franchises.          

       

Omni-Channel Strategy

Lenskart started as an online business, but later they understood that Indian customers choose to touch and feel the product before buying a product, so they shifted to the Omni Strategy to influence technology to actively employ their customers and adapt to the ever-changing consumer expectations.

Acquisitions by Lenskart

DailyJoy was bought by Lenskart; it is the company's only acquisition. 

SoftbanOPCk holds the majority of the company's claims, accounting for 20.12% of the total. Premji Invests is next, with 11.1 per cent of the stakes. Kedaara Capital holds 99.55 per cent of the stock, while TR Capital owns 8.28 per cent of the stock. Push and Neha Bansal, co-founders of Lenskart, own 8.21% and 8.18% of the company, respectively. The company's other owners are: 

6.59%- UNILAZER 

5.36%- International Finance Corporation 

5.32%- Steadview Capital 

17.24%- Others 

Competitors

Lenskart is up against both offline and online competitors that include: 

GKB Opticals                                         

Coolwinks 

Specsmakers 

Deals4Opticals

Lensbazaar 

Vision Express 

Titan Eyeplus

Lenskart faces competition from e-commerce marketplaces like Amazon, Flipkart, Paytm Mall, and Snapdeal which sell eyewear and impact its business directly.

What Will the Future Hold for Lenskart?

About one-third of India's population requires spectacles. Lenskart was founded to give India a "vision." In line with this, Lenskart Lite, a low-cost franchise model targeting upcountry regions, particularly tier 3 and 4 markets, was recently established. A Rs 20 lakh investment is required for the model, which is aimed at micro-entrepreneurs.

The format generates around Rs 4-6 lakh in revenue every month. They already have a Lenskart franchise plan for tier-2 regions, with a Rs 35 lakh investment criteria and monthly revenue estimates of Rs 8-10 lakh. Since 2010, when Lenskart was founded, the eyewear industry has taken a new direction.

Written By: Akshitha 

Edited By: Nidhi Jha