Sector: E-commerce/Consumer
Founded: 2010
Valuation: $2.5 billion (2021)

Overview: Lenskart is an online and offline retailer for eyewear, offering prescription glasses, sunglasses, and contact lenses. It focuses on providing affordable eyewear while maintaining high-quality standards. Lenskart owns its in-house manufacturing facility, ensuring better control over costs and quality.

Challenges encountered:

• Managing manufacturing in a business that requires precise prescriptions and quality control.
• High operational costs due to a hybrid online-offline business model.
• Cash flow issues caused by upfront investment in inventory and slow-moving products.
• Difficulty in expanding operations to Tier 2 and Tier 3 cities while maintaining quality and service levels.

Solutions Implemented:

• Inventory Management Optimization: Introduced a demand forecasting model to manage inventory more efficiently and avoid stockpiling slow-moving products.
• Supply Chain Financing: Implemented supplier financing options, easing cash flow pressures and ensuring timely payments to vendors.
• Operational Cost Control: Streamlined operations by automating store management systems in offline outlets and reducing excess labor costs.
• With over $400 million raised from KKR and SoftBank, Lenskart expanded its offline presence, opening stores across Tier 2 and Tier 3 cities while continuing its e-commerce growth.

Outcomes Attained:

• Improved inventory turnover rate, reducing excess stock by 20%.
• Eased cash flow pressure through supplier financing, allowing the company to reinvest in expansion.
• Lowered operational costs, enabling smoother expansion to Tier 2 and Tier 3 cities while maintaining profitability.