Peyush Bansal, co-founder and CEO of Lenskart, is reportedly in talks to raise a loan of Rs 200 crore to increase his stake in the company, according to a report by Moneycontrol. Bansal aims to buy shares from existing investors at a significantly lower valuation ahead of the company’s planned IPO later this year.
Bansal eyes shares at steep discount
According to Moneycontrol, Bansal is negotiating to purchase Lenskart shares at a valuation of $1 billion (approximately Rs 8,500 crore). This is nearly one-tenth of the $10 billion (Rs 85,000 crore) valuation the company is expected to target during its IPO.
If the deal goes through, it will bring Lenskart’s valuation back to its 2019 levels. The move also signals Bansal’s intent to have greater ownership and influence in the company before it enters the public markets.
Bansal’s Stake to rise to 6 per cent
Bansal currently holds about 4 per cent stake in Lenskart. Through this transaction, he plans to raise his stake by another 2 percentage points, taking his total to around 6 per cent. He is expected to buy the shares from existing investors including SoftBank, Chiratae Ventures, and TR Capital, all of whom are reportedly selling a part of their holdings, reports Moneycontrol.
As per data from Tracxn, Bansal also holds shares from the company’s Employee Stock Ownership Plan (ESOP) pool, which makes up about 19 per cent of the overall ownership.
Founders eye more control ahead of IPO
It is not unusual for startup founders to increase their stakes from secondary transactions at lower valuations before going public. Swiggy’s CEO Sriharsha Majety and FirstCry’s CEO Supam Maheshwari had taken similar steps before their respective IPOs.
According to the same report of Moneycontrol, Lenskart is expected to file its Draft Red Herring Prospectus (DRHP) in the coming weeks. The company plans to raise $1 billion through the IPO at a $10 billion valuation. Kotak Mahindra Bank, Axis Capital, Citi, Morgan Stanley, and Avendus are advising the company on the public issue.
Lenskart’s financial performance
Although Lenskart had turned profitable earlier, it has been reporting losses in recent years as it expands its global footprint. In FY24, the company posted a loss of Rs 10 crore on a revenue of Rs 5,427 crore. The company has not yet disclosed its FY25 financials.
Lenskart and Bansal did not respond to queries from Moneycontrol till the time the story was written.