Lenskart to spend Rs 320 crore from IPO on brand marketing

New Delhi: Eyewear major Lenskart Solutions plans to allocate Rs 320 crore from its upcoming Rs 2,150 crore IPO towards brand marketing and business promotion, as per its draft red herring prospectus (DRHP) filed with SEBI.

The company, which turned profitable in FY25 with a net profit of Rs 297.3 crore, said it will invest in content-led digital campaigns, endorsements, television advertising, and influencer marketing to boost brand awareness across India and international markets. 

Part of this capital will also be deployed through its long-standing media partner, Starcom (TLG India), under a Rs 400 crore media services agreement valid till 2029.

Lenskart spent Rs 448.41 crore on advertising and marketing in FY25, up from Rs 352.1 crore in FY24.

It currently employs 169 professionals in marketing and sales. The brand attributes its cost efficiency to its omnichannel model, which enables cross-leveraging of digital, store, and home visit touchpoints to optimise marketing impact.

Marketing and promotion costs as a percentage of revenue dropped to 6.74% in FY25 from 7.76% in FY23. Lenskart claims this efficiency has come from tightly integrated campaigns across platforms and a strategic shift to influencer-led content and performance tracking.

Of the total IPO proceeds, the company has also earmarked Rs 272.6 crore for new company-owned retail stores and Rs 591.44 crore towards lease-related expenses. Another Rs 213.37 crore will be invested in technology and cloud infrastructure. 

A pre-IPO placement of Rs 430 crore may reduce the fresh issue size.

Lenskart reported revenue of Rs 6,652 crore in FY25, a jump from Rs 5,428 crore in FY24. EBITDA stood at Rs 1,115 crore in FY25, up from Rs 763 crore the previous year.

Founded in 2008, Lenskart operates an omnichannel model, combining online and offline formats across design, manufacturing, retail, and branding. It plans to expand brand presence globally while maintaining profitability and marketing effectiveness.

Kotak Mahindra Capital, Morgan Stanley, Avendus, Citi, Axis Capital, and Intensive Fiscal Services are managing the IPO.