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Bluestone Poised for IPO with Potential $100 Million Investment Round

BLUESTONE
Preeti Bali / 10:02 am / June 25, 2024

Bluestone, a leading omnichannel jewelry brand in India, is inching closer to an initial public offering (IPO). The company is currently in negotiations to secure a significant investment of approximately INR 830 crore ($100 million) from a consortium of investors, including Peak XV Partners, Steadview Capital, and Think Investments.

Pre-IPO Funding to Bolster Valuation

This pre-IPO funding round will involve a combination of share sales by existing investors and an infusion of fresh capital. According to a report by ET, this move is expected to value the omnichannel retailer at a pre-money valuation of around INR 7,500 crore ($900 million). Peak XV Partners is expected to contribute a significant portion of the investment, with a commitment of around INR 415 crore ($50 million).

Structure of the Funding Round

The funding round is structured as a mix of primary and secondary transactions. Additionally, there’s a possibility of participation from family offices through special purpose vehicles. The entire funding round is anticipated to close in the coming days.

Valuation Soars Compared to Previous Round

This latest investment round signifies a substantial increase in Bluestone’s valuation compared to its previous funding round in September 2023. During that round, the company raised capital from prominent investors like Manipal Group’s Ranjan Pai, Zomato’s Deepinder Goyal, and Zerodha’s Nikhil Kamath, at a valuation of $450 million.

About Bluestone

Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, Bluestone has established itself as a prominent omnichannel player in the Indian jewelry market. The company boasts an extensive collection of over 8,000 designs across various categories, including rings, pendants, earrings, and more. In 2022, Sudeep Nagar, the company’s COO, was elevated to the position of co-founder.

Strong Revenue Growth and Reduced Losses

Prior to this pre-IPO funding round, Inc42 reported Bluestone’s plans to raise $16.5 million in a combined equity and debt structure from a group of investors. This initiative followed their exploration of $9 million in debt funding from Trifecta Capital.

The company’s financial performance has also witnessed positive developments. Bluestone reported a significant 1.6X jump in revenue from operations during FY23, reaching INR 770.7 crore compared to INR 461.3 crore in the previous fiscal year. Additionally, their losses saw a substantial reduction of 86%, declining from INR 1,268.4 crore in FY22 to INR 167.2 crore.

Thriving Indian Jewelry Market

It’s worth noting that the Indian jewelry industry is a booming sector, generating nearly $77 billion in revenue in 2023. This surpasses established markets like China, the US, Japan, and Russia. The industry’s success is further highlighted by recent funding rounds secured by other jewelry brands. In March 2024, D2C brand Kushal’s garnered INR 284 crore in Series B funding, while silver jewelry brand Giva secured $35 million in a Series B round led by Premji Invest last year.

Bluestone’s strategic pre-IPO funding round positions the company for a successful public offering, leveraging the potential of the thriving Indian jewelry market.

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