Peyush Bansal: Success Story Of Lenskart

Peyush Bansal – Biography 

Peyush Bansal- The Visionary man who founded Lenskart to transform the way people see and experience the World. Since the beginning of the Company, Lenskart has defied expectations on how people engage with eyewear. Yes Lenskart is all about eyewear and eye care.  Peyush Bansal and His company visions for a world where eyewear helps you Do More, Be More.  He focused for disrupt in eye wear industry and today Lenskart is one of Biggest Eyewear Brand in India. Let us understand his journey in detail.

Early Life and Education of Peyush Bansal

• Peyush Bansal studied at Don Bosco School, Delhi. After completing his schooling, he prepared for IIT but didn’t get through it. Peyush then decided to study engineering at a foreign university and after so much hard work and effort, he finally got admission to McGill University, Canada.
• Later he got admission into Bachelor of Engineering Honors in Electrical- IT, Control and Automation. From 2002 to 2006 he completed his bachelor’s degree there. While doing their studies he used to work as a part-time receptionist where we developed his interest in computers and coding.
• After completing his studies at McGill University, he started his career as a Program Manager in a popular Tech Giant- Microsoft, USA. He worked there for nearly one year from January 2007 to December 2007. He also completed (MPEFB- Management) from IIM, Bangalore.
• Peyush left his job and in 2008 he moved to India. Despite not having a business idea and experience, he decided to start a new business with a small capital that he had earned from his previous job. In December 2007 he started a company basically an online portal (SearchMyCampus.com) to solve the various issues of college students such as housing, coaching, jobs, transportation, books, etc. After this, he with his friends founded Valyoo Technologies Pvt. Limited which is now known as Lenskart.

 Peyush Bansal Net Worth and Investments

• Through dedication and expertise, he has become a beacon of motivation for budding entrepreneurs. As of 2024, Lenskart founder Peyush Bansal’s net worth is estimated to stay approximately Rs. 600 crores.
• Peyush Bansal lives a luxurious life with many luxury cars, as he has a BMW, Mercedes, Audi, and Land Rover. Furthermore, he has also invested in an employee engagement platform at Feedo and dailyobjects.com, a lifestyle brand.
• Peyush Bansal has made numerous investments in companies like Push Sports, Yes Madam, and Jewel box (Accessories)within the Educational and Training Services (B2C), Services (B2C Non-Financial), and Accessories industries. Peyush Bansal’s latest investment was on 19-Feb-2024 in Push Sports, a company within the Educational and Training Services (B2C) industry.

Peyush Bansal Family

• Peyush Bansal was born on 26^th April 1985 to Mr..Bal Kishan Bansal and Kiran Bansal. He is married to Nimisha Bansal.
• Peyush has one elder brother and one sister. Peyush and Nimisha has one son.

 Peyush Bansal Lenskart India: How It All Began?

• After completing early education, Peyush moved to Canada for further studies from where he completed his engineering degree. After this Peyush did his first job at Microsoft, the world’s biggest company. Peyush used to get package of lakhs at Microsoft. But he was not happy with the work as he wanted to start his own business and he thought to come back to India in the year 2007.
• He launched SearchMyCampus as the first vocational service in 2007. He then went on to find a series of companies including John Jarcobs, Equivalence and Lenskart under which he set up the Lenskart Vision Fund which is a Lenskart Plus Company. In the year 2010, Peyush Bansal founded Lenskart with Sumeet Kapathi and Amit Choudhary. First the Company sold only contact lenses.
• But later on it also started selling sunglasses and eye glasses. Today it has more than 5000 frames and glasses in their portfolio as well as more than 46 different types of high quality lenses and now the company has reached a new heights of success. Today Lenskart has more than 1550 outlets across India. Adopting a franchisee model business. Peyush expanded Lenskart to every region of the country and today he also provides an eye check-up facility.

Business Model of Lenskart

Lenskart operates through a unique business model that has helped it become one of the largest eyewear retailers in India. Here’s a closer look at Lenskart’s business model:

 Strategic Partnerships

• Lenskart has developed strategic partnerships with several key players in the eyewear industry. It has collaborated with manufacturers to source high-quality frames and lenses at affordable prices. The company has also partnered with lens manufacturers to develop its own lenses, which it sells under its brand name.
• Additionally, Lenskart has partnered with technology providers to create a seamless online shopping experience for its customers. It has also partnered with brick-and-mortar stores to expand its reach and provide customers with a personalized in-store experience.

Revenue Generation

• Lenskart generates revenue through several streams. Its primary source of revenue is the sale of eyewear products, including frames, lenses, sunglasses, and contact lenses. The company has a wide range of products, catering to customers of all ages and needs.
• Lenskart also generates revenue through its subscription-based services. It offers a subscription service called Lenskart Gold, which provides customers with exclusive benefits, such as free eye tests, free home eye check-ups, and discounts on eyewear products.

Cost Structure

• Lenskart’s cost structure is based on several factors, including the cost of goods sold, marketing and advertising expenses, and technology expenses. The company has a vertically integrated supply chain that helps it keep its costs low. It sources its products directly from manufacturers, eliminating the need for middlemen and reducing costs.
• Lenskart invests heavily in marketing and advertising to increase brand awareness and attract new customers. It uses a combination of traditional and digital marketing channels to reach its target audience.
• Finally, the company incurs technology expenses to develop and maintain its online platform. It has invested in advanced technologies to provide customers with a seamless online shopping experience and personalized recommendations.

Customer Segments in Lenskart’s Business Model

Lenskart’s customer segments can be broadly classified into the following categories:

• Budget-conscious consumers: Lenskart caters to customers who are looking for affordable and value-for-money eyewear solutions. This segment comprises individuals who are price-sensitive and are looking for affordable eyeglasses, sunglasses, and contact lenses without compromising on quality.
• Fashion-conscious consumers: Lenskart also targets customers who are fashion-conscious and seek eyewear that reflects their style and personality. This segment comprises individuals who are willing to spend more on designer eyewear and are looking for a wide range of trendy and fashionable eyewear options.
• Individuals with vision problems: Lenskart also caters to customers who have vision problems and require prescription eyewear. This segment includes individuals who require corrective glasses or contact lenses for near-sightedness, farsightedness, or astigmatism.
• Tech-savvy customers: Lenskart also targets tech-savvy customers who prefer to shop online and use digital channels to browse and purchase eyewear products. This segment comprises individuals who are comfortable using online platforms to browse, select, and purchase eyewear products.

Value Propositions in Lenskart’s Business Model

• Wide range of products: The Company offers a wide range of eyewear products, including prescription glasses, sunglasses, contact lenses, and eye care accessories. Customers can choose from a large selection of styles, materials, and colours.
• Affordable pricing: Lenskart offers affordable pricing on its products, making eyewear accessible to a wider audience. The company often runs promotions and discounts, making it an attractive option for cost-conscious customers.
• Convenience: Lenskart offers a convenient shopping experience to its customers. Customers can shop online or in-store, and can even book a home eye check-up service through the company’s website. This makes it easy for customers to get the eyewear they need without having to leave their homes.
• Personalization: Lenskart offers a personalized shopping experience to its customers. The company uses a virtual try-on feature on its website, allowing customers to see how different frames will look on their face. Lenskart also has trained optometrists in its stores who can help customers find the perfect pair of glasses.
• Quality: Lenskart offers high-quality products that are made with durable materials. The company also offers a 14-day return policy, allowing customers to return products if they are not satisfied with their purchase.

Lenskart Funding and Valuation

The largest shareholders of Lenskart include ADIA, Soft-Bank Vision, Kedaara Capital, TR Capita, Alpha Wave Global, Premji Invest, etc. Let’s look at the recent shareholding structure of Lenskart-

 The majority of the stakes are owned by Softbank i.e. 20.1% followed by Premji Invest (11.1%) and ADIA (10%).

Fundings so far & Valuation

Lenskart signed a definitive agreement with ADIA for a 10% stake in the company. ADIA invested a massive amount in Lenskart through SWF i.e. Gulf Sovereign Wealth Fund. Let’s look at the latest funding rounds of Lenskart-

 Competition Analysis: What Makes Lenskart Stand Out?

1. Integrated Model: Lenskart controls its supply chain, including manufacturing and assembly units. This gives them an edge in ensuring quality control, quicker delivery, and inventory management.
2. Hybrid Retail Strategy: Lenskart’s combination of online and offline stores allows them to cater to a wide range of customers. While the online platform provides convenience, the physical stores offer a touch-and-feel experience, credibility, and immediate service.
3. Technological Innovation: The Company has been at the forefront of using technology to enhance the customer experience. Features like the virtual 3D try-on technology set them apart from many traditional eyewear retailers.
4. Diverse Product Range: Lenskart offers various styles, categories, and price points, ensuring that different customer segments can find products to their liking.
5. Home Services: Their home eye check-up service offers unmatched convenience, helping them stand out in a crowded market and cater to those hesitant or unable to visit physical stores.
6. Private Label Advantage: By creating its private-label brands, Lenskart ensures higher margins and can offer competitive prices. This also allows them better control over product design and innovation.
7. Aggressive Marketing: Lenskart’s branding and marketing campaigns have been prominent, making them one of the top-of-mind brands in the eyewear sector in India.
8. Customer-Centric Initiatives: From easy returns to warranties on products, Lenskart has always focused on building trust and ensuring customer satisfaction.

 Peyush Bansal in Shark Tank

• Peyush Bansal, who is arguably the most-admired shark on the show, would have not accepted the show’s offer. When he was first made the offer, he wanted to turn it down. But his wife, Nidhi, insisted that it was a great opportunity.
• And then when they went on their vacation to Maldives. Peyush watched back-to-back episodes on the television in his room while facing some of the most pristine waters one can. He did the same at other engagements as well. Despite him enjoying the show, he wasn’t sure.
• Like most entrepreneurs he was hard-pressed for time, and the show needed lots of it. It’s funny that even when he shot the first time, he wasn’t sure. That’s why he hadn’t signed the show’s contract. Then the lights went on. The shoot and the start-up founders’ energy inspired him. Then, there was no looking back.

 Peyush Bansal Personal and Professional Achievements

• He is the recipient of the Red Herring Top 100 Asia Award 2012 for his venture Valyoo Technologies and was awarded ‘Emerging Entrepreneur of the year’ in the Indian e-tail Awards 2012.
• He received the ‘India TV Yuva Awards in 2015.
• Economic Times recognized Peyush Bansal under India’s Hottest Business Leaders under 40. He was also listed in Fortune India’s Best 40 under 40 entrepreneurs in 2019.

5 Companies Launched by Peyush Bansal before Lenskart’s Success

1. SearchMyCampus.com

• Peyush Bansal started SearchMyCampus.com in December 2007 with ₹25,00,000 from the basement of his parent’s house. It was an online portal that helped college students to easily solve common issues faced by them like jobs, housing, coaching, books, transportation, etc. He worked on SearchMyCampus for 2 years. 
• Peyush Bansal founded Valyoo Technologies in 2008. Valyoo Technologies is the parent company of Lenskart.

2. Flyrr

• Peyush Bansal started Flyrr in June 2009. It was an online store that sold spectacles, sunglasses and contact lenses. The same idea as Lenskart but concentrated on the US market.
• Peyush faced some problems, which made him realize that in order to run a business smoothly, both operations and delivery had to be controlled by him and his team. He decided to replicate the same model in India, and hence Lenskart was born in November 2010.

3. Watchkart.com

• With Lenskart on track, Peyush Bansal launched another niche venture in May 2011 called Watchkart. Watchkart sold branded watches and catered to a lot of brands like Emporio Armani, Tommy Hilfiger, Fossil, etc. 

4. Bagskart

• In August 2011, Peyush Bansal launched Bagskart. Bagskart was another of Peyush Bansal’s niche portals under Valyoo Technologies. BagsKart sold different varieties of handbags. 

5. JewelsKart

• With three niche verticals, Lenskart, Watchkart, and Bagskart, already in place, Peyush Bansal started another vertical, Jewelskart. As the name would suggest, JewelsKart sold jewellery of different kinds. 
• With a growth of 200%, Lenskart was performing better than all its sister verticals by 2014. Because of low traction and financial losses, Peyush Bansal shut down Watchkart, Bagskart, and Jewelskart in 2015. This helped him focus on Lenskart better and make it the brand it is today.

Lessons to Learn from Peyush Bansal

• Peyush believed firmly in his vision of bringing technology driven eye care to everyone. After doing his Electrical Engineering from Canada, he worked for Microsoft, but in 2007 he left the job to come back to India. He did MBA from IIM Bangalore and founded Lenskart in 2010. It takes guts to leave a well-paid job to pursue your passion.
• Peyush is humble. Not to generalize but people who have studied abroad usually would be more humble as they experience the same in foreign lands, unlike people who have studied in India who would be more boastful of their tags and can be rude as well. In India it is common that’s why we like Ashneer. However, Peyush retained his humbleness after coming back to India as well.
• He respects people and he would like to invest or take a bet on people rather than businesses. He invested in Jugaadu Kamlesh.
• He also believe in Social causes. He invested in Gold life anti suicide rods. He is highly technology centric since he worked at Microsoft in past. He believe that technology can help solve many of the today’s issues. He also has shown the same through his Unicorn Company “Lenskart”..
• He has a purpose to bring eye care to every Indian. He is driven by that purpose. Lastly but not the least, Peyush shows that one don’t need to be cunning or utmost selfish to succeed in business, one can still be successful in business with clear purpose or goal, conviction in that goal and then with the help of technology and automation can produce world class product. Rather than cutting his competition, he has made his product a world class with constant innovation with no competition which can match him. I am not aware of anyone who is competition to Lenskart.