SoftBank’s Block Deal in Lenskart Attracts Global Investors, Boosts Indian Retail Sector

SoftBank has sold Rs 2,873 crore worth of Lenskart shares in a block deal to a mix of global and domestic institutional investors, including funds managed by Goldman Sachs and Fidelity, in a move that highlights the growing interest in the Indian retail sector.

SoftBank’s Block Deal Attracts Global Investors

The stake sale attracted a broad mix of global and domestic institutional investors, including funds managed by Goldman Sachs, Fidelity, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Mirae Asset Mutual Fund, Quant Mutual Fund, HDFC Life Insurance, ICICI Prudential Life Insurance and several overseas pension and investment funds.

Elara Capital recently initiated coverage on Lenskart with a “Buy” rating and a target price of Rs 615, implying an upside of about 22% from its reference valuation of Rs 504.

Lenskart’s Differentiated Business Model

Lenskart is one of India’s most differentiated retail businesses, with an integrated model spanning eye testing, manufacturing, distribution and retail, according to Elara Capital.

Market Impact and Details

• Lenskart’s store economics are among the strongest in Indian retail, supported by revenue productivity of around Rs 25,000-30,000 per square foot, gross margins of nearly 69% and store payback periods of roughly 10-12 months.
• The company is expected to deliver a revenue CAGR of 25% and EBITDA CAGR of 38% between FY26 and FY29.
• Lenskart has expanded beyond India through acquisitions such as Owndays in 2022 and Meller in 2025, with international operations now accounting for about 42% of revenue.

Key Takeaways

• Lenskart’s differentiated business model and strong store economics make it an attractive investment opportunity.
• The company’s technology-led approach to vision care, including conducting around 600 eye tests per store every month, is a key pillar of its investment thesis.
• Lenskart’s expansion beyond India through acquisitions is a key growth driver for the company.

FAQs

What is Lenskart’s business model?

Lenskart is an integrated retail business that spans eye testing, manufacturing, distribution and retail.

What are Lenskart’s financial projections?

Lenskart is expected to deliver a revenue CAGR of 25% and EBITDA CAGR of 38% between FY26 and FY29.

Has Lenskart expanded beyond India?

Yes, Lenskart has expanded beyond India through acquisitions such as Owndays in 2022 and Meller in 2025, with international operations now accounting for about 42% of revenue.

Conclusion

SoftBank’s block deal in Lenskart shares highlights the growing interest in the Indian retail sector and Lenskart’s differentiated business model. With its strong store economics, technology-led approach to vision care and expansion beyond India, Lenskart is an attractive investment opportunity for institutional investors.