Focus on bringing on good partners, not maximizing valuation: Lenskart’s Peyush Bansal

Startup founders should focus on finding the right partners and investors rather than maximizing valuations, eyewear unicorn Lenskart co-founder and CEO Peyush Bansal said at the Bengaluru Tech Summit 2024 on Thursday. Because the latter is quite short-term in nature.

“The right partner will see what you see, trust you not only in good times but also in bad times, and think long-term with you. When we have an investment like the Abu Dhabi Investment Authority time [Abu Dhabi Investment Authority] In a fireside chat with Prashanth Prakash, founding partner of early-stage venture capital firm Accel India, Bansal said:

He said a huge problem in the Indian startup ecosystem today is founders’ rush to pursue valuations. “Valuations are good in the short term, but in the long term it’s the transformation and the value you’re creating that matters. And that can’t be achieved through short-term optimization.”

Founded in 2010, Lenskart is an omni-channel eyewear retailer with operations in Singapore, UAE and other regions. It sells prescription glasses, sunglasses and contact lenses. The company is gradually shifting most of its manufacturing operations to India and a new plant recently started operations.

Talking about the gaps in the consumer industry, Bansal said that thanks to the quality of engineering talents, India has huge inherent advantages in manufacturing. “Our engineering and optimization ecosystem makes our manufacturing capabilities 10 times better than anyone else’s.”

Furthermore, Bansal noted that India is well-positioned to address global environmental issues as its diverse tropical climate can help address them at low cost.

Bansal has acted in Shark Tank India By 2022, the show will also appear in several episodes of this year’s season, he said.

“I grew up watching shark tank, I became an entrepreneur because of that show. when they approach me [to join the show as a shark]I was hesitant because I like to keep a low profile. But my wife and co-founder pushed me. I learn more from it Shark Tank More important than me sitting in my office. ” added Bansal.

Lenskart plans to list on the public market in the next two years. The company’s losses in 2023-24 have reduced by 84% year-on-year to $100 million, benefiting from operational efficiencies achieved through expanded product line-up. The loss in 2022-23 will be $640 million rupees.

The Gurgaon-based company’s revenue grew 43% $5,427 crore while expenditure surged to $5,549 Crore Rs. $Financial statements from business intelligence platform Tofler show that it was Rs 4,025 crore in 2022-23.

Lenskart has raised over $1.7 billion in funding from prominent investors such as ChrysCapital, Temasek and Fidelity.

In the past 18 months alone, the eyewear market has raised nearly $1 billion in funding.

Fund manager Fidelity recently raised its valuation by 12% to $5.6 billion as it plans to list on the public markets within the next two years.