BLUESTONE SECURES RS 550-CRORE FUNDING BOOST; NIKHIL KAMATH COMMITS RS 100 CRORE
24th September 2023
In a high-profile funding round, Bluestone, the renowned omnichannel jewellery retailer, is set to receive a significant infusion of capital totaling Rs 550 crores (approximately $65 million). The funding will value the Bengaluru-based company at an impressive Rs 3,600 crores ($440 million), marking a pivotal moment in its growth journey.
Notable Investors Lead the Charge:
Zerodha Co-Founder Nikhil Kamath has emerged as a key player in this funding extravaganza, pledging a substantial Rs 100 crores (around $12 million) towards Bluestone’s expansion and innovation efforts. Joining him are industry stalwarts like Deepinder Goyal, founder and CEO of Zomato, and Amit Jain, CEO of CarDekho, all making significant contributions.
Financial services powerhouse IIFL is also part of this financial bonanza, highlighting the confidence of major players in Bluestone’s potential.
Rising Competition and Strategic Investments:
This infusion of funds comes at a crucial juncture as competition intensifies in the omnichannel jewellery retail sector. It follows closely on the heels of Tata Group’s Titan acquiring a significant stake in CaratLane, a rival omnichannel retailer, valuing the company at a staggering $2 billion.
Ambitious Expansion Plans:
Bluestone’s founder and CEO, Gaurav Singh Kushwaha, has expressed his enthusiasm for this development, emphasizing the company’s intent to expand its omnichannel presence further. Currently boasting 175 stores, Bluestone envisions a future with 500-600 stores, showcasing their commitment to reaching a wider audience.
Kushwaha is bullish about Bluestone’s prospects, citing robust traction across cities, from tier 1 to tier 3. He anticipates significant opportunities on the horizon and intends to allocate a substantial portion of the newly acquired capital to expand the omnichannel footprint and invest in cutting-edge technology for seamless integration and operational optimization.
Financial Milestones:
Bluestone’s growth story is impressive, with reports indicating a remarkable 70% increase in revenue for FY23 compared to Rs 477 crores in FY22. This comes after a nearly 90% growth rate in FY22, following a flat year in FY21. Furthermore, the company achieved EBITDA profitability in August and is poised to maintain this status for the full year in FY24.
Strong Backing and Industry Presence:
Established in 2011, Bluestone has garnered support from renowned investors, including Ratan Tata, Accel, Kalaari, Iron Pillar, IvyCap, and Saama Capital. Its journey thus far underscores its resilience and vision within the dynamic jewellery retail landscape.
In a similar strategic move, Tata Group’s Titan recently acquired the remaining stake in CaratLane, consolidating its position in the jewellery market.
Bluestone’s latest funding coup signals not only its own promising future but also the thriving potential of India’s omnichannel jewellery retail sector as it continues to capture the imagination of investors and consumers alike.
