BlueStone, the omnichannel jewellery startup, has its sights set on a significant milestone as it gears up for a pre-IPO funding round, aiming to secure close to $100 million. Backed by notable investors including Ratan Tata, Accel, and IvyCap, the Bengaluru-based company is reportedly in discussions to achieve a valuation exceeding $1 billion.
Pursuit of Profitability and Pre-IPO Momentum
With a strategic focus on achieving profitability by March of the following year, BlueStone has been actively engaging both new and existing investors to raise fresh capital ahead of its public listing. According to reports from the Economic Times, the startup’s pre-IPO round has garnered substantial interest, with multiple bids on the table valuing the company at over $1 billion, potentially propelling it into the coveted unicorn club. Finalization of the deal is anticipated in the coming weeks.
Impressive Growth Trajectory
This prospective valuation represents a remarkable leap from BlueStone’s previous appraisal of $450 million in September 2023, when it secured $65 million in funding from prominent backers including Deepinder Goyal, co-founder of Zomato, and Nikhil Kamath, co-founder of Zerodha. Additionally, early investors may capitalize on this momentum by divesting a portion of their holdings in the forthcoming round.
Path to Public Offering
BlueStone’s pursuit of pre-IPO funding aligns with its broader aspirations for a successful public listing. The startup aims to raise INR 2,000 crore through its IPO, anticipated to launch within the current year. Earlier reports indicated the company’s intent to secure $16.5 million in a blend of equity and debt from investors such as Innoven Capital, Ashwin Kedia, and Sankar Bora. Previous funding endeavors included plans to raise $9 million in debt financing from Trifecta Capital.
Building on Strong Foundations
Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, BlueStone has established itself as a premier destination for fine jewellery, boasting an extensive collection of over 8,000 designs spanning various categories including rings, necklaces, pendants, and earrings. The company’s robust performance underscores its market traction, with revenue from operations witnessing a notable 1.6X surge in FY23, reaching INR 770.7 crore compared to INR 461.3 crore in FY22.
Industry Landscape and Competitive Dynamics
BlueStone’s growth trajectory reflects broader trends within the Indian jewellery sector, which amassed revenues nearing $77 billion in 2023, surpassing leading global markets such as China, the US, Japan, and Russia. This dynamic ecosystem has witnessed notable investment activity, with players like Kushal’s and Giva securing significant funding rounds to fuel their expansion ambitions.
