Neil Blumenthal says he was working on his M.B.A. when he and three friends began chatting in the computer lab about the high prices of new glasses.

Warby Parker's Neil Blumenthal, who likes— but doesn't need— glasses. Claudio Papapietro for The Wall Street Journal

That discussion eventually led to the creation of Warby Parker, an online eyewear retailer that sells glasses for $95. When it launched in 2010, Warby Parker—named for characters in Jack Kerouac writings, Warby Pepper and Zagg Parker—sold out of 15 styles in four weeks and accumulated a wait list of about 20,000 people, Mr. Blumenthal says.

The business keeps prices low by designing its own geek-chic frames, cutting out licensing fees, working directly with suppliers and eliminating markups by selling directly to consumers, who submit their prescriptions online.

Mr. Blumenthal, the company's co-CEO, says he sees a lot of opportunity for growth. Americans spent about $18 billion on frames and lenses, not including contact lenses, in the U.S. last year, according to the latest data from The Vision Council. Online sales currently represent just 1.6% of that.

The eyewear industry is currently dominated by Luxottica Group, which owns brands such as Oakley and Ray-Ban, and retail chains such as LensCrafters, Pearle Vision and Sunglass Hut.

Mr. Blumenthal, 31, declined to disclose sales or to specify the valuation of the start-up. Edited interview excerpts:

WSJ: How did Warby Parker get started?

Mr. Blumenthal: I met three amazing guys, Jeff, Andy and Dave. I found that we were complaining about glasses being ridiculously expensive.

And we had each had that experience: Walking to an optical shop, getting super excited about a pair of glasses, and walking out feeling like we got punched in the stomach. We thought, there's got to be a better way here.

Andy had noticed that more and more categories were going online. You could buy shoes from Zappos and engagement rings from Blue Nile. We asked, was there an opportunity to sell glasses online?

We like being able to sell online because to us it was an obvious way to bypass the middleman, to bypass the optical shop charging three to five times margins.

It was also a way for us to create our own brand, so we could really show people who we are. And we could avoid the licensing fees. The thing that most people don't realize is that when you buy a pair of Ralph Lauren or Chanel glasses or sunglasses, it's not Ralph Lauren or Chanel producing it or selling it. It's a licensing company. In their particular case, it's Luxottica.

WSJ: How did you get the funds to first begin the business?

Mr. Blumenthal: We started the business with less than $150,000. We were able to sustain the business for quite a while. We had traction. So we weren't eager to run out and to raise money, because that's expensive.

We got a $50,000 line of credit from TD Bank. That was 100% secured by our own cash. So we were borrowing our own money. But then we realized: Business is taking off. We need some more cash in order to buy more glasses.

We went to 15 different banks trying to get a term loan. We kept getting told no, no, no. Finally, we were able to get a $200,000 loan from a regional bank. It was backed by the Small Business Administration.

That debt was somewhat helpful. But the company kept growing. We've done two equity raises to date.

WSJ: Why open a store now? [Warby Parker plans to open its first brick-and-mortar store in New York's Soho neighborhood.]

Mr. Blumenthal: We're a fashion brand first so [having a store] helps reinforce what we're trying to tell people about who we are. No other major fashion brand has launched online before. That's new to people.

So having bricks and mortar offers some gravitas for the brand. It's a very high foot traffic area in Soho so it will expose the brand to a lot more people.

WSJ: Do you need your glasses?

Mr. Blumenthal: No. I have good vision.