Bluestone, an omnichannel jewellery retailer, is in talks to raise around $100 million in a pre-IPO round, likely valuing the company at more than $1 billion. This funding would catapult the startup into the unicorn club, according to a report by ET citing three individuals familiar with the matter.
This new valuation would more than double Bluestone’s previous valuation of around $450 million from September 2023, when the company, which operates both online and offline stores, raised $65 million from investors including Zomato founder Deepinder Goyal and Zerodha’s Nikhil Kamath.
Bengaluru-based Bluestone’s pre-IPO round is attracting interest from both new and existing investors, spurred by the Tata Group’s CaratLane deal last year, where Titan bought out founder Mithun Sacheti’s stake.
Bluestone, the second-largest omnichannel jewellery retailer after CaratLane, has informed both public and private market investors in recent weeks that it expects to become profitable by March 2025, according to people briefed on the matter.
“Multiple bids to lead the new round have been received, with some valuations exceeding $1 billion,” said one of the sources. “The specifics will be finalised in the following weeks. The company has been engaging with both public and private market investors recently. The business model is now better understood, and its potential to scale profitably is more widely accepted.”
Continue Exploring: BlueStone to secure $16.5 Million in funding through debt and equity
During this round, there’s a possibility that some early investors might sell a portion of their shares.
Gaurav Singh Kushwaha, founder and CEO of Bluestone, refrained from making any comments.
Competitive Landscape: Giva, Melorra, and Market Dynamics
In addition to Bluestone, Giva, a startup specializing in silver jewellery, secured $35 million in funding last year, with Wipro founder Azim Premji’s family office, Premji Invest, leading the round. Melorra is another venture-backed startup operating in the same sector.
So far this year, only two startups have achieved unicorn status: Perfios and Krutrim AI, founded by Ola’s Bhavish Aggarwal. This matches the total number for the whole of 2023.
Reports indicate that the firm is planning for a INR 2,000 crore IPO this year and has started engaging with merchant bankers for this.
Continue Exploring: Titan’s CaratLane jewellery line to make US debut in FY25
Last year, Singapore’s Temasek was in advanced negotiations to invest in Bluestone, but ultimately withdrew from the deal.
“When they (Bluestone) started in 2011 and the following years, omnichannel wasn’t really recognised by investors. Today, everyone is talking about it and how crucial it is in a market like India. The CaratLane deal has given a valuation (INR 17,000 crore at the time) benchmark as well,” a source familiar with the situation explained. “The round is being seen as a price benchmark for the IPO.”
In the past year, Bluestone has significantly expanded its presence in offline retail, currently operating approximately 200 stores nationwide. The company aims to further expand its footprint to 500-600 stores in the coming years.
“Moreover, there’s ample data indicating that offline stores contribute to building brand credibility, which in turn boosts online sales,” another individual familiar with the dynamics of the online jewellery market explained. “The foot traffic in stores correlates with online orders. Additionally, online search volume assists in pinpointing locations for opening new stores,” stated the founder of a prominent omnichannel brand.
In FY23, Bluestone’s operating revenue surged to INR 788 crore from INR 476 crore the previous year, while its losses decreased to INR 167 crore from INR 1,268 crore. The significant loss in FY22 was attributed to an accounting adjustment. The company witnessed a nearly 90% growth in FY22 following a stagnant performance in FY21.
Continue Exploring: BlueStone achieves remarkable 67% growth in operating revenue for FY23, eyes INR 3,600 Cr valuation in upcoming funding round
