Lenskart is aiming for a potential $10 billion valuation—double its previous funding round valuation—for its upcoming initial public offering (IPO), according to sources familiar with the matter. The omnichannel eyewear retailer plans to file its draft papers in May.

In recent weeks, CEO Peyush Bansal and key investors have discussed the valuation with bankers overseeing the $1 billion public offering. However, the plans depend on market conditions closer to the IPO’s launch.

“Work is underway to file the draft red herring prospectus (DRHP) by May so it can… get listed this calendar year,” said one of the persons cited. “Internally, some feel even more aggressive about the valuation, but that may not be in sync with current market conditions, and one has to leave money on the table for incoming IPO investors.”

“The firm, along with stakeholders, is now ready to go public,” said another person, adding that there may not be time left to close a pre-listing round. “That’s the big change in stance now on the IPO.”

Given Lenskart’s size and profitability, investors had considered entering the public markets over the past year, but Bansal had not finalized the plans. Instead, large secondary deals over the past two years allowed investors to sell partial stakes for liquidity. In June last year, Lenskart completed a $200 million secondary round at a $5 billion valuation, up from the previous $4.5 billion in a primary funding round. While secondary rounds usually occur at a discount, Lenskart shares have been highly sought after by both new and existing investors.

An investor in the company also said, “There’s always more demand to buy than sell.”

Several late-stage startups are preparing for share sales in FY26, highlighting their increasing appeal to retail and institutional public market investors.

Lenskart, backed by SoftBank and Temasek, is the dominant leader in the eyewear market, with profitable and growing operations in India. Additionally, the company anticipates substantial growth in Thailand and expansion for Owndays, a key element of its premium strategy.

According to one of the sources, Lenskart acquired the Japanese brand in 2022 in a $400 million deal. Lenskart also holds a “significant stake” in the Paris-based omnichannel eyewear brand Le Petit Lunetier.

Since its founding, Lenskart has raised almost $2 billion in funding, including secondary sales, which do not direct funds to the company but instead involve exchanging shares between new and existing investors.

Lenskart has been working toward full profitability ahead of the IPO, with a sharp reduction in losses and steady revenue growth.

In FY24, net loss shrunk to Rs 10 crore, from Rs 64 crore in FY23, on technology-driven operational efficiencies. “They (Lenskart) rely on and leverage a lot from technology, which leads to operational efficiency in an omnichannel model,” said a person who works with Bansal.

Operating revenue increased by 43% year-on-year, reaching Rs 5,428 crore in FY24. EBITDA more than doubled to Rs 856 crore in FY24, compared to Rs 403 crore in FY23.

In an interview last year, Bansal mentioned that the net promoter score, a key measure of customer satisfaction, had risen from 65 in previous years to over 80, indicating the success of the company’s initiatives. “Tech is at the heart of everything we do, whether it’s improving the customer experience, optimizing supply chain, or reducing delivery times,” he had said.

Lenskart is intensifying its focus on local manufacturing and expanding its retail network.

The company has moved most of its manufacturing to its factory in Rajasthan and is investing $200 million in a new facility in Telangana. This move will boost India’s export business and lower costs.

Although online sales have grown faster than offline sales in the past two years, the company plans to open 400 new stores, expanding its existing network of 2,500 brick-and-mortar locations.