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Lenskart is EBITDA profitable with Rs 3,788 Cr revenue in FY23

Eyewear giant Lenskart has been making waves in the business world, securing a whopping $600 million investment from the Abu Dhabi Investment Authority and ChrysCapital between March and June 2023. This hefty funding reflects Lenskart's exceptional financial performance in the fiscal year ending March 2023. During this period, the company not only witnessed a substantial 2.5X increase in its scale but also managed to slash its losses by an impressive 37%.

Lenskart's revenue from operations skyrocketed to Rs 3,788 crore in FY23 from Rs 1,502 crore in FY22, as revealed by its consolidated financial statements filed with the Registrar of Companies (RoC). The majority of this revenue, about 59%, was generated from the sale of eyewear collections in India, with the remainder coming from its international operations spanning regions like Singapore, Dubai, the US, and Southeast Asia.

In addition to its operational revenue, Lenskart also raked in Rs 140 crore from interest and other non-operational sources, pushing its total income to Rs 3,928 crore in FY23 compared to Rs 1,618 crore in FY22.

A closer look at Lenskart's expenditure reveals that the cost of procuring lenses and frames accounted for 34% of its overall expenses. This cost surged to Rs 1,369 crore in FY23 from Rs 599 crore in FY22. The company's total expenditure, including expenses related to employee benefits, rent, advertising, commissions, incentives, legal, traveling, and other overheads, amounted to Rs 4,025 crore in FY23, up from Rs 1,726 crore in FY22.

Despite the significant scale-up, Lenskart managed to trim its losses by 37.3% to Rs 64 crore in FY23 from Rs 102 crore in FY22. With an ROCE (Return on Capital Employed) of 0.24% and EBITDA margins of 11.1%, Lenskart demonstrated sound financial health. On a unit level, it spent Rs 1.06 to earn a rupee in FY23.

Lenskart's impressive performance has attracted substantial investments, totaling over $1.6 billion to date. In its last funding round of $100 million in June last year, Lenskart was valued at $4.5 billion. Notable investors include Softbank, Premji Invest, and Kedaara Capital. The company's enterprise value to revenue multiple stood at 2.8X in FY23, according to Fintrackr's estimates.

Recent reports suggest that Lenskart is poised to raise an additional $200 million from Temasek and Fidelity through a secondary round, potentially pushing its valuation to $5 billion. Founder and CEO Peyush Bansal revealed plans to acquire land near Bengaluru airport for a mega factory, indicating the company's ambitious growth trajectory.

Lenskart's success story underscores its position as a dominant player in the eyewear market, with a strong brand presence and a solid foundation for future expansion. With profitability no longer a major concern for investors and a clear focus on global markets, Lenskart is primed to emerge as a major player in the industry, possibly achieving decacorn status by 2026-27.


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