Lenskart's Bansal set to join list of founders with pre-IPO stake boosts

Omnichannel eyewear retailer Lenskart is likely to issue additional shares to its founder and CEO Peyush Bansal through a structured payout arrangement, which could increase his stake in the public markets-bound company by 1.5-2%, said people briefed on the development. Bansal and his sister Neha Bansal, who is also a cofounder, together hold about 12-13% stake in the firm.

The move reflects a broader trend among consumer tech and internet companies, such as Zomato (now Eternal), Swiggy, Delhivery, PB Fintech and Freshworks, which have awarded stock to founders ahead of their initial public offerings (IPOs) through various mechanisms.

Industry executives said that for companies raising significant capital, founder stakes often get diluted, and that pre-IPO stock grants serve as a way to compensate and retain them.

“It’s quite common for founders to increase their stake ahead of an IPO… They see the upside and approach the board, citing their low shareholding. When a founder’s stake drops significantly, boards often accommodate by allocating shares through expanded Esop (equity stock ownership plan) pools or other mechanisms,” said Anshuman Das, CEO of executive staffing firm Longhouse.

This is facilitated through increasing the Esop pool, buying out an existing investor or preferential allotments, Das said, adding, “In large consumer tech or internet firms, heavy fundraising often leads to substantial dilution of founder equity.”

Such a practice is common among new-age, venture-backed companies where founders often see greater dilution, unlike in traditional businesses where promoters retain a larger shareholding.