Peyush Bansal-Led Lenskart’s Operating Revenue Crosses INR 1,500 Cr Mark In FY22

Peyush Bansal-led Lenskart slipped into the red in the financial year ending March 31, 2022. The SoftBank-backed D2C eyewear brand posted a consolidated loss of INR 102.3 Cr in FY22 against a profit of INR 28.9 Cr in FY21 as the rise in expenses outpaced the increase in its revenue. 

The startup had last reported a loss of INR 31.5 Cr in FY19. In FY20, it posted a profit of INR 6.3 Cr. 

Lenskart’s total revenue rose 56.7% to INR 1,618.3 Cr in FY22 from INR 1,032.2 Cr in FY21, while revenue from operations surged 66% to INR 1,502.7 Cr from INR 905.3 Cr in FY21. 

With this, Lenskart became the second Indian D2C startup after New Delhi-based boAt to cross the INR 1,500 Cr mark in operating revenue. In FY20, Lenksart’s revenue from operations stood at INR 900 Cr. 

Lenskart earns revenue from the sale of its products and services. In FY22, the startup generated INR 1,417.7 Cr through selling of eyewears, while it earned INR 48.8 Cr from sale of services. It earned INR 115.6 Cr from interests on its investments. 

Meanwhile, the startup’s expenses jumped 72.8% to INR 1,726.1 Cr in FY22 from INR 998 Cr in FY21. 

The cost of material consumed rose 1.7X to INR 458.8 Cr in FY22 from INR 279.2 Cr in FY21. Employee benefit expenses shot up 53% to INR 254.2 Cr in FY22 from INR 160 Cr in FY21. 

Employee benefit expenses comprise employee salaries, PF contributions, gratuity, and other employee welfare benefits. A rise in employee benefit expenses indicates that the startup’s employee headcount has increased over the last year. 

The startup spent INR 304.9 Cr on commission paid to selling agents. This was a 1.6X increase from INR 186.3 Cr in FY21. Lenskart’s advertising and promotional expenses also rose 71.8% to INR 234.6 Cr from INR 136.5 Cr in FY21. 

Lenskart’s EBITDA margin worsened to 0.06% in FY22 from 7.74% in FY21.

Lenskart was founded by Bansal, Amit Chaudhury, and Sumeet Kapathi in 2010. The Delhi-based startup claims to serve more than 7 Mn customers annually via the omnichannel shopping experience it provides through its website, mobile application, and more than 750 stores across 175 cities. The startup made its international foray in 2019 by entering Singapore. 

Earlier this year, the startup acquired Japan’s eyewear brand OWNDAYS for $400 Mn. With this deal, Lenskart became Asia’s largest omnichannel eyewear brand, with presence in 13 markets including India and Japan, along with countries in South East Asia.

Lenskart has raised $165 Mn in funding till date in multiple tranches from Alpha Wave Ventures, Avendus Capital, Epiq Capital, and Ravi Modi Family Trust. In July last year, Lenskart raised $315 Mn from Temasek, Falcon Edge, Bay Capital, KKR, Chiratae Ventures, among others. 

It competes with the likes of ClearDekho, Coolwinks, and Urban Monkey in the eyewear space.