Lenskart is an Indian online portal for eyewear, founded by Peyush Bansal in November 2010 in Delhi. The company's portfolio of products ranges from prescription glasses, contact lenses to sunglasses. Its business model is what makes the company different from others, as it bridges the gap between different touchpoints i.e. it gives the customer an Omnichannel experience where a customer can order either from the store or from an online medium.
Lenskart is one of the e-commerce companies that operate in both online and offline distribution channels. Customers can order their products over the online portal or from Lenskart's uniquely designed offline store. The company is revolutionizing the eyewear industry through first its kind “Home eye checkup”. Lenskart also becomes a unicorn company in the year 2019.
The company delivers products to over 450 cities in India. Valyoo Technologies is the parent company under which it is registered. Lenskart app is the No.1 shopping app for eyewear as it has the widest collection of specs, sunglasses, goggles, frames, anti-glare, contact lenses, reading glasses, computer glasses, try glasses at home, prescription sunglasses, and eye accessories.
A Brief History of Lenskart
The Business Model of Lenskart
The Omni Channel Method
Lenskart Funding
Growth Drivers
Features of Lenskart
Competitive Analysis
FAQs
A Brief History of Lenskart
The founder and CEO of Valyoo Technologies (parent company of Lenskart) is Peyush Bansal. He pursued his Bachelors in Electrical Engineering - IT, Control & Automation from McGill University, Canada in 2006. Before he returned to India to pursue PG in Management from IIM, Bangalore, Peyush worked as a Program Manager with Microsoft for a year.
Peyush launched his company Valyoo Technologies with SearchMyCampus as the first business portal in 2007. It was a classified site for students that provided options for accommodation, books, part-time jobs, carpool facilities, and internship opportunities. When that became a big hit, Peyush wanted to explore the e-commerce world. While exploring opportunities the eyewear segment caught his eye and inspired him to come up with his own.
This led to the creation of Flyrr.com which was a website that focused on the eyewear market in the US. Flyrr went on to gain good traction and this prompted him to test the waters in the Indian markets and launch Lenskart in November 2010. Lenskart then started with just selling contact lenses and added eyeglasses a few months later continued by the sunglasses.
Avantika Bhardwaj
The Business Model of Lenskart
Lenskart offers over 5000 frames and glasses and more than 45 different kinds of high-quality lenses. The company follows an inventory-led business model wherein equal sourcing is done from India and China. Lenskart has its own team of designers and stylists that keep a tab on the latest trends in the eyewear department, the designs made by the team are then passed down to the manufacturers.
In order to reach the masses, they have also ventured into offline stores through the franchises model. They have more than 50 stores across 30 cities with a target to cover more than 50 cities. They have balanced the reach by spreading out across metro and non-metro locations and are currently serving more than 4000 people in a day and looking at scaling it up to 200,000 people in the coming years.
They are 4 success factors in this industry which are the quality of the product, the product portfolio, the delivery time, and lastly the sales service. Lenskart has a good value proposition that provides high-quality products at an affordable price. They also have a team of 1000 people who operate on manufacturing, eye technicians, custom service, technology, and logistics which further expand as the growing demands.
| Company Name | Lenskart |
|---|---|
| Headquarters | Faridabad, Delhi NCR, India |
| Founded On | 2010 |
| Founder and CEO | Peyush Bansal, Amit Chaudhary and Sumeet Kapahi |
| Employees | 4000 |
| Annual Revenue | $68.3 Million |
| Products & Services | prescription glasses, contact lenses to sunglasses |
Ashwini
The Omni Channel Method
Lenskart started off as an online business, but when they understood that the Indian customers prefer to touch and feel the product before buying a high involvement product. This is when they shifted to the Omni strategy as it was important for them to leverage technology to actively engage their customers and adapt to the ever-changing consumer expectations.
Nearly 22% of digitally influenced consumers in 2014 said that digital drove them to spend more across all categories. For Lenskart, customer engagement is important as they help their customers get a shopping experience tailored according to each customer’s preferences. Lenskart is trying to keep itself close to the customers and increase trust by providing value proposition and home eye checkups.
Lenkart is known to give bundled offers like buying two at the cost of one or cross offers like giving the first frame for free, real-time offers, personalized recommendations, email coupons, etc. Lenskart has expanded to 80 cities which are based on the franchise business model in which 35% of all revenue is shared with the franchisee and an annual fee of 2, 00,000 lakhs.
Lenskart Funding
Lenskart has raised a total of $554.6 million in funding over 10 rounds. Their latest funding was raised on May 16, 2021, from a Secondary Market round. The company is funded by 15 investors - Kohlberg Kravis Roberts, Temasek Holdings, SoftBank Vision Fund, Kedaara, Chiratae Ventures, T&R, Unilazer, IFC, TPG, Adveq, IDG Ventures. Lenskart has four investments and their most recent investment was on 13th October 2020 when Tango Eye and Ditto valued at $500k each.
The total funding of Lenskart is $554.6 million which are:
- October 2011 raised $4 million in series A.
- December 2012 raised $10 million in series B.
- January 2015 raised $21.9 million in series C.
- May 2016 raised $60.1 million in series D.
- September 2016 raised $2 billion in series E.
- January 2017 raised $240 million in a Secondary Market round.
- September 2019 raised $55 million in series F.
- December 2019 raised $275 million in Series G.
- May 2021 raised $95 million in the Secondary Market round.
Sweta
Growth Drivers
- “The first frame is free” offer - where customers will pay for only the lens on their first purchase. A good strategy to attract first-time buyers.
- “Try at home” – where customers can choose a maximum of 5 frames and try them at home before making a final purchase. This has led to more sampling by customers.
- Eye checkups by optometrists at home across cities have been introduced.
- They have been doing 1500 checkups a day and have a conversion of 50%.
- Innovation use of technology – developed a 3D facial visualizer where customers can see how the frames will look on them.
Features of Lenskart
- Infinite variations and model of Eyewear.
- Find a frame that suits your style.
- Latest collection with fashionable trends.
- 3D Try On.
- Book Eye checkup at your own home.
- Shop from a range of 100% authentic brands.
- Order online and pay cash on delivery.
- Scan product barcodes with the camera.
- Live chat with the customer support team.
Devashish Shrivastava
Competitive Analysis
Lenskart's competitors include both online and offline players. Even traditional retailers who specialize in eyewear are the competitors of Lenskart. Competition is clearly heating up in this space with players like GKB, Lawrence and Mayo, Titan Eye Plus, Bausch and Lomb, Vision express, Specsmakers, Coolwinks, Deals4Opticals. Some manufactures like Ray-Ban, Essilor have their own online stores.
Lenskart faces competition from e-commerce marketplaces like Amazon, Flipkart, Paytm Mall, Snapdeal which sell eyewear and impact its business directly. With a market size of Rs. 18000-20000 crore, organized players account for barely 9-10% of the market. The brands compete with a vast variety of low-priced products available offline and online so the challenge is to steer customers away from local opticians and keep them loyal.
FAQs
What is Lenskart's business model?
Lenskart is an optical eyewear portal that provides you home eye checkups, 3D trial facilities, and the highest quality spectacles at the best possible price.
Is Lenskart a Chinese company?
Lenskart is an Indian retail chain for spectacles having factories in China as well.
Is Lenskart costly?
You'll find the best value at its online stores.
Why is Lenskart so cheap?
Since Lenskart is a B2C company, there are no intermediaries involved to eat their revenue.
Is Lenskart lens good?
They have a range of lenses, you can choose as per your choice.
How does Lenskart make money?
Since no intermediaries are involved between buyer and seller so whatever revenue generated comes directly to the company's account.
Author: PV Vyshnavi
Source : https://startuptalky.com/lenskart-business-model/
Date : 2021-07-09T10:00:00.000Z
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