BLUESTONE EYES UNICORN STATUS IN PRE-IPO FUNDING ROUND
4th June 2024
Bluestone, omnichannel jewellery retailer is poised to join the unicorn club, with discussions underway to secure approximately $100 million in a pre-IPO funding round. The anticipated valuation exceeds $1 billion, a significant leap from its previous valuation of $450 million in September 2023, according to sources familiar with the matter
Omnichannel Jewellery Retailer Set to Raise $100 Million, Boosting Valuation to Over $1 Billion
Bluestone, omnichannel jewellery retailer is poised to join the unicorn club, with discussions underway to secure approximately $100 million in a pre-IPO funding round. The anticipated valuation exceeds $1 billion, a significant leap from its previous valuation of $450 million in September 2023, according to sources familiar with the matter.
This dramatic increase follows Bluestone’s successful $65 million funding round last year, which saw contributions from notable investors such as Deepinder Goyal, founder of Zomato, and Nikhil Kamath of Zerodha. The new pre-IPO round has attracted interest from both new and existing investors, buoyed by the recent Tata Group’s CaratLane acquisition, where Titan bought out founder Mithun Sacheti’s stake.
Bluestone, currently the second-largest omnichannel jewellery retailer after CaratLane, has informed both public and private market investors of its plan to achieve profitability by March 2025. “Multiple bids to lead the new round have come, with some surpassing the $1 billion mark,” a source revealed. “The final details will be ironed out in the coming weeks as the company engages with investors more deeply.”
The upcoming funding round might also involve some early investors partially offloading their stakes. Bluestone’s founder and CEO Gaurav Singh Kushwaha has refrained from commenting on the matter.
In the broader market, other jewellery startups are also making waves. Giva, a silver jewellery startup, raised $35 million last year in a round led by Wipro founder Azim Premji’s family office, Premji Invest. Similarly, Melorra is another notable venture-funded entity in the sector.
So far this year, only two startups—Perfios and Ola founder Bhavish Aggarwal’s Krutrim AI—have achieved unicorn status, matching the total number for 2023. Earlier this year, ET reported that Bluestone, backed by Accel, is gearing up for a Rs 2,000 crore IPO and has initiated talks with merchant bankers.
Last year, Singapore’s Temasek was in advanced negotiations to invest in Bluestone but eventually withdrew from the deal. “When Bluestone started in 2011, the omnichannel model was not widely understood by investors. Today, its significance in the Indian market is well-recognized,” a source explained. “The CaratLane deal, valued at Rs 17,000 crore at the time, has set a benchmark for valuation.”
Over the past year, Bluestone has aggressively expanded its offline presence, operating around 200 stores nationwide with plans to increase this to 500-600 stores in the coming years. “Offline stores significantly bolster brand credibility, which in turn drives online sales,” another insider noted. “Footfall in stores correlates with online orders, and online search volumes help identify potential store locations,” added the founder of a large omnichannel brand.
In FY23, Bluestone reported operating revenue of Rs 788 crore, up from Rs 476 crore the previous year, while its loss reduced to Rs 167 crore from Rs 1,268 crore, with the steep FY22 loss attributed to an accounting change. In FY22, the company saw nearly 90% growth following a flat year in FY21.
Bluestone’s impressive growth trajectory and strategic expansions position it as a formidable player in the jewellery retail market, with its impending unicorn status marking a significant milestone in its journey.
