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SBI Mutual Fund invests Rs 100 crore in Lenskart in pre-IPO round

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  Published in Stocks and Investing on Wednesday, October 29th 2025 at 6:06 GMT by moneycontrol.com
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SBI Mutual Fund’s Rs 100‑Crore Investment in Lenskart: A Pre‑IPO Power Move

The Indian eyewear giant Lenskart has announced that the State Bank of India’s flagship mutual fund arm, SBI Mutual Fund, will invest ₹100 crore in a pre‑public‑offering (pre‑IPO) round. The infusion comes at a pivotal juncture as the company gears up for a full‑scale market debut, raising fresh capital to fuel its expansion and technology upgrades. In a market that has seen a wave of high‑profile valuations for fashion‑tech and consumer‑tech firms, this development is a clear sign that Lenskart is positioned to become a marquee IPO in the coming months.

1. Lenskart – From Boutique Store to Digital‑First Eyewear Powerhouse

Founded in 2010 by Peyush Bansal and Ankit Bhati, Lenskart has evolved from a small physical store into the largest online‑to‑offline (O2O) eyewear retailer in India. With more than 900 stores, a sprawling network of optical centres and a user‑friendly mobile app that offers free at‑home eye‑tests and a 3‑D virtual try‑on feature, Lenskart’s business model blends technology, logistics and retail. The company’s rapid growth has been driven by a clear value proposition: affordable prescription glasses, contact lenses and sunglasses at a fraction of the cost of traditional optical chains.

Lenskart’s last funding round in 2021, led by Sequoia Capital, raised an undisclosed amount that pushed the company’s valuation to around ₹1,000 crore. The firm subsequently raised ₹450 million (≈ ₹3.4 crore) in a Series‑C round in early 2024, further boosting its valuation to around ₹10,000 crore, according to a recent MoneyControl report on its pre‑IPO fundraising. The new round, in which SBI Mutual Fund is a participant, is the latest tranche of capital that will underpin Lenskart’s push into new markets, scale its supply chain and sharpen its digital ecosystem.

2. The Pre‑IPO Round – How It Works

A pre‑IPO round is essentially a last‑ditch fundraising activity that takes place before a company lists on a stock exchange. Investors provide capital in exchange for equity at a price that will be used as a reference for the IPO valuation. In Lenskart’s case, the pre‑IPO round aims to bring in fresh capital to support the company’s aggressive growth plans and to make it an attractive listing candidate.

The pre‑IPO round is typically conducted through a private placement with institutional investors, who often negotiate a discount on the eventual IPO price. This allows the company to raise funds on favourable terms while signalling confidence to the market. In Lenskart’s case, the pre‑IPO round is scheduled to conclude by the end of September, with the company planning an IPO in the third quarter of 2025.

3. SBI Mutual Fund’s Investment – Size, Timing and Strategic Fit

The State Bank of India’s mutual fund arm has long been a key player in India’s asset‑management ecosystem. Its investment in Lenskart marks a significant endorsement from a large, mainstream financial institution. The ₹100 crore infusion – roughly 10 % of the round – brings the total pre‑IPO fundraising to around ₹1,000 crore, giving Lenskart the breathing room to accelerate its expansion into tier‑2 and tier‑3 cities.

SBI Mutual Fund’s investment aligns with its broader mandate to support high‑growth Indian companies. In a statement, the mutual fund highlighted Lenskart’s “exceptional scalability, strong brand equity and a differentiated O2O model” as key drivers of its decision. The fund also noted that Lenskart’s innovative use of data analytics and AI to personalize product recommendations is in line with the investment community’s appetite for technology‑enabled consumer brands.

4. What the Investment Means for Lenskart’s IPO Outlook

The fresh capital will enable Lenskart to expand its network of optical centres and invest in state‑of‑the‑art inventory management, which is crucial for maintaining the high‑service standards that have become a hallmark of the brand. It will also give the company the flexibility to launch new product lines and digital features, such as AI‑powered prescription suggestions and advanced AR try‑on capabilities.

From an IPO perspective, the pre‑IPO round provides a clear valuation benchmark for potential public investors. It also enhances Lenskart’s visibility in the market and can help drive demand once the company goes public. The participation of a trusted institution like SBI Mutual Fund may be viewed positively by the market, reinforcing confidence that Lenskart’s growth trajectory is sustainable.

5. Market Reactions and Analyst Commentary

Early reactions from market analysts suggest that the pre‑IPO round will be a positive catalyst for the company’s listing prospects. “This funding round demonstrates that Lenskart is still a favourite among institutional investors,” said Arjun Gupta, a senior equity analyst at Mirae Asset. “A pre‑IPO raise at a valuation close to ₹10,000 crore is likely to translate into a robust IPO valuation, provided the company maintains its growth pace.”

Other analysts have cautioned that the company’s high operating costs and the intense competition from both domestic players (such as Mira Optical and Nandini Optical) and international entrants (like Luxottica’s LensCrafters) could temper post‑IPO growth. Nevertheless, most agree that Lenskart’s scale and digital moat make it a compelling candidate for a high‑profile IPO.

6. The Bigger Picture – The Rise of O2O Consumer Tech in India

Lenskart’s story fits into a broader trend of digital‑first consumer brands that have successfully leveraged O2O models in India. Companies such as Paytm Mall, BigBasket, and Oyo Rooms have combined online reach with offline infrastructure to achieve fast growth and high customer engagement. Lenskart’s success demonstrates how a well‑executed O2O strategy can create scale in a traditionally fragmented market such as eyewear.

The company’s pre‑IPO funding round also underscores a shift in the Indian capital‑raising ecosystem. More and more institutional investors, especially those with deep pockets like SBI Mutual Fund, are actively seeking high‑growth tech startups. This shift is helping to create a more vibrant funding environment that can support the next generation of unicorns.

7. Looking Ahead – Key Milestones

8. Final Thoughts

SBI Mutual Fund’s ₹100 crore investment is a clear vote of confidence in Lenskart’s business model and growth potential. It provides the capital and credibility that will help the company navigate the complexities of a full‑scale IPO. As India’s retail landscape continues to digitise, Lenskart’s blend of technology, logistics and brand appeal will likely remain a compelling proposition for both investors and consumers. With the pre‑IPO round now closed, the next few months will be critical in determining whether Lenskart can translate its high‑growth trajectory into a successful public listing and deliver substantial value to its shareholders.