Peyush Bansal, the visionary founder and CEO of omnichannel eyewear retailer Lenskart, is set to significantly increase his stake in the company ahead of its highly anticipated Initial Public Offering (IPO).This move mirrors a growing trend among founders of prominent Indian tech and internet companies, where pre-IPO stake boosts are becoming a strategic mechanism to solidify control and maximize personal returns as their ventures transition to public markets.

Sources familiar with the development indicate that Lenskart is likely to issue additional shares to Bansal through a structured payout arrangement. This could potentially increase his and his wife Neha Bansal's combined stake by 1.5-2%, moving from their current 12-13% to a higher figure. While the exact financial details are still being finalized, reports suggest that Bansal is looking to acquire shares at a valuation around $1 billion, significantly lower than Lenskart's anticipated IPO valuation, which is projected to be in the range of $8-10 billion for a $1 billion public issue. This substantial difference allows founders to acquire more equity at a favorable price before the company goes public.

This phenomenon of founders increasing their pre-IPO stake is gaining traction in India's startup ecosystem. Companies like Zomato (now Eternal), Swiggy, Delhivery, PB Fintech, and Freshworks have all seen their founders secure additional stock or options ahead of their public debuts. The rationale behind this trend is multi-faceted. In venture-backed companies, successive funding rounds often lead to significant dilution of the founder's ownership. Pre-IPO stake boosts serve as a way to compensate founders for their long-term commitment and steerage of the company, ensuring they retain a meaningful shareholding as the company unlocks public market value.

Furthermore, industry executives point out that boards are often more receptive to such arrangements as an IPO is a major milestone, and founders should directly benefit from the immense value they have created. For founders, it's also about having "more skin in the game" and a stronger incentive to deliver sustained performance once listed.

Lenskart, founded in 2010 by Peyush Bansal, Amit Chaudhury, and Sumeet Kapahi, has grown to become India's largest eyewear brand with over 2,500 stores across India, UAE, Singapore, and Japan. The company has a robust omnichannel model, combining online presence with physical stores, and has consistently invested in technology, including its recent strategic investment in AI-glasses company AjnaLens.

Financially, Lenskart has shown a strong trajectory. In FY24, the company reported a significant 43% jump in sales, reaching ₹5,427.7 crore, while impressively trimming its net loss by 84% to just ₹10 crore.This improved profitability and strong revenue growth are key factors bolstering investor confidence as it prepares for its public listing.

Lenskart converted into a public limited company last month, a necessary step for companies planning to list on Indian stock exchanges.The company is expected to file its Draft Red Herring Prospectus (DRHP) with SEBI in the coming weeks, with leading investment banks like Kotak Mahindra Bank, Axis Capital, Citi, Morgan Stanley, and Avendus advising on the public issue.

As Lenskart navigates the final stages towards its highly anticipated IPO, Peyush Bansal's strategic move to increase his stake underscores the founder's long-term vision and commitment to the company's future growth in the public market.