Lenskart projects 20% revenue growth in FY 2020-21

NEW DELHI: SoftBank-backed Lenskart Eyewear Solutions has projected a 20% growth in gross sales in the present monetary yr, at a time when the continued Covid-19 pandemic has introduced client companies in India to their knees.
However, the revenue projection for 2020-21 are a big drop for the corporate, which has traditionally recorded 40%-50% growth year-on-year until fiscal 2019. It is but to file its financials for fiscal 2020.

“At a time like this, we are still hoping to record a 20% growth in business for financial year 2020-21… It is obviously not as much as we have usually recorded in the past, and is certainly not going to be in the 40%-50% revenue growth range that we anticipated earlier, prior to the pandemic,” Peyush Bansal, chief govt of Lenskart, informed ET.

Lenskart’s gross sales are being pushed primarily by way of the corporate’s web site and cellular app. The break up between on-line and offline gross sales are at present in a ratio of 90:10, based on Bansal, whereas pre-Covid-19, it was usually recording a ratio of 70:30 in favour of gross sales by way of its 600-plus shops.

The Faridabad-based eyewear options firm, which needed to shutter its shops throughout the nation, because the nation went right into a lockdown to fight the pandemic, has reopened about 100 shops over the past one week, that are positioned in inexperienced zone designated areas, and expects prescription glasses and get in touch with lenses to drive revenue for the continued fiscal.

“There is a demand for quality affordable eyewear, and we are the only ones that can provide it to you online, at home, as well as in the store, while ensuring all safety precautions are in place, and at scale,” Bansal mentioned.

The firm, which bought about 6 million pairs by the top of March 2020, is anticipating gross sales of about 7 million pairs by the top of the present fiscal, with demand choosing up third-quarter onwards.

According to Bansal, the corporate can be projecting opening a further 200 shops by way of the course of the present monetary yr.

“We want to add at least another 200 stores this year. The model will change. Instead of a fixed rental, we are looking to enter into a revenue-share with potential landlords…We are working on the locations for new store openings right now. They will be spread across a combination of tier-1 and tier-2 cities,” Bansal mentioned.

The opening of recent shops comes at a time when international scores businesses have continued to slash financial growth projections, for Asia’s third-largest financial system, citing the shocks to the system triggered by the Covid-19 pandemic.

Last month, Fitch Ratings hacked India’s GDP growth to 0.8% in the present fiscal, stating an unparalleled international recession was underway resulting from disruptions attributable to the outbreak of covid-19 pandemic and resultant lockdowns, including that the stoop in growth was primarily resulting from a projected fall in client spending to only 0.3% in FY21.

“We, fortunately, are in a business which is a necessity… Retail will, and is, going through a tough time, but it also depends on the category in which you’re operating… While consumption has taken a hit, people continue to need affordable eyewear. We have a speciality there, and we need to serve this demand,” Bansal mentioned.

The offline shops are primarily serving as eye take a look at centres for purchasers

“Almost 60% of the country’s population needs vision correction. People need their glasses. That problem is not going away. The stores are not just points of sale for us. While the Covid-19 may linger for some more time, there is a time after that as well,” Bansal mentioned.

The CEO additionally mentioned that there are not any plans to lift additional capital from buyers, as the corporate is “well capitalised” and continues to maintain its burn fee underneath management.

“We have also been fortunate, because we had raised financing right before the outbreak of the pandemic. Otherwise, the situation could have quite different. This definitely allows us to cruise.” Bansal mentioned.

In 2019, Lenskart had raised an estimated $330 million in fast succession from SoftBank’s Vision Fund-II and home-grown non-public fairness main Kedaara Capital, in a mixture of major and secondary transactions, and which catapulted it into the unicorn membership.

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