Revenue for Lenskart’s FY22 increased by 66% to Rs 1,502 crore, but losses persisted
- ByStartupStory | November 11, 2022
In the preceding fiscal year (FY22), omnichannel eyeglasses retailer Lenskart’s consolidated operating revenue increased by 66% to Rs 1,502 crore, indicating a rebound in sales following the Covid-19 outbreak. Regulatory documents obtained from business intelligence platform Tofler showed that the SoftBank-backed company, however, recorded losses of Rs 102 crore after recording a profit of Rs 28 crore in the previous financial year.
According to those with knowledge of the situation, Lenskart, the leading player in India, has been expanding in Southeast Asia and its investments for international expansion are one of the causes of the losses. To expand its global reach, Lenskart purchased Japan’s Owndays in June in a $400 million agreement. Over 94% of overall operational revenue comes from the sale of eyeglasses items; the remaining 6% came from subscription fees and other sources. Over 1,100 outlets are now run by the corporation in India.
In June, Lenskart announced that it would continue to invest heavily in technology and that its 300-person engineering team would grow to 500 during the current fiscal year (FY23).In terms of significant expenditures, it boosted staff costs to Rs 245 crore during FY22, a 74% and 53% rise, respectively, while spending over Rs 486 crore on material purchases.
Following the completion of its most recent round of investment in July, Lenskart, which also counts KKR and Alpha Wave among its backers, was given a valuation of $4.5 billion. “In the upcoming fiscal year, we aim to grow by 60 to 70%. The majority of Lenskart’s 1,100 outlets are located in India, but we will still add 400 more as we aim to increase our revenue, said chief executive Peyush Bansal in July. Additionally, Lenskart established Neso, a roll-up e-commerce business that just received a $100 million investment round and welcomed Bjorn Bergstrom as its new CEO. Through its online and offline channels, Neso plans to invest in and grow up-and-coming eyewear brands.
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