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Jagpreet
26 July, 2024
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“There is no secret sauce for success and the only way to grow is to hustle, fail, learn and grow”.
These refreshing and inspiring words by the co-founder of Lenskart, Peyush Bansal show us how big vision and great intentions can change the world.
The success story of Peyush Bansal, your favourite judge from Shark Tank India is truly inspiring and gives you valuable lessons. It takes long working hours, and sometimes years to get together a business. This visionary entrepreneur transformed the way people buy and sell eyewear, completely in India. He was quick and sharp to identify the gap in the eyewear and eyecare industry, and that’s when he along with other business partners Sumeet Kapahi and Amit Chaudhary, worked long hours to launch Lenskart. After watching him on Shark Tank, many of you got curious to know his educational qualifications, his net worth and his journey. In this blog, let’s walk you down Peyush Bansal’s journey.
Born in New Delhi on April 26, 1985, Peyush Bansal completed his early education at Don Bosco School. Later, he wanted to do engineering at IIT but went ahead for foreign education and completed his engineering degree from McGill University, Canada in Electrical – IT, Control and Automation. After his under graduation, he got a job at Microsoft as a Programme Manager in the US where he worked for almost a year. Working at Microsoft was a turning point in his career.
He took a dramatic step and came back to India. Back then, he had no strong business idea or any experience. However, he launched an online portal ‘SearchMyCampus.com’ to help college students find jobs, housing, coaching, books, transportation and other such common needs. This experience motivated him to pursue management education at IIM Bangalore. The first-hand experience of running a start-up, failing and the management education prepared him for the future. During this phase, he identified a gap in the Indian eyewear industry which gave birth to Valyoo Technologies Pvt. Ltd. or Lenskart.
The setback from SearchMyCampus did not stop the rookie entrepreneur. He stayed in high spirits and came up with a new idea, Flyrr in 2009. This new venture was able to make $100,000 a month. But the US suppliers were not customer-centric so the complaints started piling up. After a rough patch of three months, he realised that Flyrr didn’t have control over the operations and delivery. Now what? This gave him the idea to replicate the Flyrr model in India. And that’s how Lenskart was born in November 2010.
In every business, the initial years are not easy. For Lenskart, the challenge was to sell glasses online in India. Something like this was never seen before in India so would there be any buyers?
He gambled. Lenskart started a no-questions-asked 14-day return policy which went on for a year. Apart from this, he set up a call centre to handle customer complaints. The shortcomings in his previous ventures helped him learn and come up with a better solution. The soaring success of Lenskart in the initial days caught the eyes of IDG, an e-commerce venture that invested in Myntra. The deal with IDG came with a clause to expand from only lenses to bags, watches, and jewellery.
All the new sites got high sales and rose from a revenue of INR 30 lakhs to INR 10 crore by 2013. In this, Lenskart’s contribution was only INR 2 crore.
Although all the ventures were getting good sales, Bansal was facing losses also except for Lenskart which was profitable. His vision was always to revolutionise the eyewear industry and only focus on Lenskart. At this point, there were doubts and contemplations which needed guidance. During a calm brain-storming session with Ronnie Screwvala, he decided to shut all other ventures and focus solely on Lenskart. This marked the investment deal between Ronnie Screwvala, Bansal and IDG. It was a tough decision, but much needed because what he and his business needed was focus.
Today Lenskart has also started a home eye check-up feature and virtual try-on feature which was a major hit. Imagine you can try on the frames to see if they look good on you or not before making a purchase. This blend of technology, affordability and quality eyewear has contributed to the revolutionisation of the eyewear industry.
According to the Times of India:
The net worth of Peyush Bansal is INR 600 crore.
His annual income includes the salary he receives from the company and through investments he made in other companies.
He earns around INR 14 crore to INR 16 crore annually.
Bansal has made investments in an employee engagement platform, Feedo of about $700,000, and dailyobjects.com, which is a lifestyle brand.
Lenskart is a unicorn with a $1.5 billion net value and around 1,550 outlets in India.
As a Shark Tank India judge, he charges INR 7 lakhs per episode.
In 2022, Lenskart, purchased the Japanese eyewear company, Owndays for $400 million.
Apart from the business assets, Bansal has a collection of luxury cars including BMW, Mercedes, Audi and Land Rover.
Owing to a whooping turnover of Lenskart, there have been 15 funding rounds so far. Moreover, it is speculated that the company will start an initial public offering in the next three years. Lenskart is thriving for many reasons, however, Peyush Bansal’s dedication, motivation, focus and great business sense are major factors. The Lenskart business model is considered a benchmark in the start-up world.
What is Lenskart’s business model? Let’s get a short glimpse of what Peyush Bansal did to revolutionise the eyewear industry.
Lenskart has a unique business model and planning which helped the company outshine other market players. Here’s an overview of the Lenskart model.
Forge Strategic Partnerships: Over the years, Lenskart forged several partnerships with key players in the industry. From lens to frame manufacturers, the company has partnered with them to provide high-quality eyewear at affordable prices. Apart from this, Lenskart has technology partners as well to enhance their services continuously.
Cost Structure:The company’s cost structure is based on various factors such as cost of goods, marketing expenses, and technology costs. The company has a vertically integrated supply chain which keeps the cost low. Instead of the middleman, Lenskart sources products directly from the manufacturers. A hefty sum is invested in marketing and advertising using both traditional and digital marketing channels.
Revenue Generation:The primary source of revenue is obviously the sale of the eyewear range. Other than this, there are subscription-based services such as Lenskart Gold. This subscription includes the benefits of free eye tests, free home checkups, and several discounts on eyewear products.
In his exemplary career, Bansal has achieved several personal and professional milestones.
Received the Red Herring Top 100 Asia award in 2012 for Valyoo Technologies
Received the Emerging Entrepreneur of the Year award in 2012 in the Indian e-tail
Seized the India TV Yuva Award in 2015
Recognised as India’s hottest business leader under 40 by Economics Times
Listed in the Fortune India’s 40 under 40 entrepreneurs in 2019
The success of Peyush Bansal speaks a lot about the struggle and hard work an entrepreneur has to do. Not just for business professionals, it may benefit each one of us at some point.
Firmly believe in your vision and take failure as an opportunity to learn.
Learn from your past to never repeat your mistakes.
Turn your losses into opportunities.
Never stop learning from your failures, competitors, colleagues and everyone around you.
Believe in the power of technology and try to benefit from it as much as possible.
Invest in people more than businesses.
Stay focused and grounded.
It is the commitment to your goals that keeps you going. Peyush Bansal’s journey from Microsoft to Lenskart shows us that rather than targeting your competition, focus on upgrading your product. So that no one can match your product. That is what Lenskart and Peyush Bansal’s success tell you.
