Transaction:
- Jewellery retailer Bluestone secured Rs 900 crore in a pre-IPO funding round, raising its valuation to around $970 million (approximately Rs 8,100 crore).
About Bluestone Jewellery:
- Launched in 2011, the second-largest omnichannel jewellery retailer in India, offers more than 8,000 designs across rings, pendants, earrings and other products.
- The company operates over 180 stores across more than 70 cities in India, offering a wide range of contemporary fine jewellery, including diamonds, gold, silver, platinum, gemstones, and pearls.
About Investors:
- Prosus invested around Rs 350 crore to the round, Peak XV Partners and Steadview Capital each invested over Rs 200 crore, while Think Investments, and Pratithi Investments invested the remaining amount. Early investor Kalaari Capital partially exited, earning about Rs 300 crore by selling half of its stake.
- Bluestone was founded in 2011 with funding from Accel and Saama capital who are still holding substantial stake in the company.
Rationale:
- This round was largely to set the valuation benchmark for pre-IPO pricing. Rs 600 crore is in primary capital infusion while the rest is in secondary share sale.
- Bluestone will use the funds for its aggressive expansion plans. It has 220 offline stores now and will be looking to make it 400 in the next 12-18 months.
- It aims to achieve profitability by March 2025, with a strong digital-first approach and a growing offline presence.
- The company is estimated to have generated a revenue of Rs 1,200 crore and Rs 3 crore EBITDA in FY24.
- Bluestone reported Rs 788 crore in operating revenue for FY23, up from Rs 477 crore a year earlier, even as its losses reduced to Rs 167 crore, from Rs 1,268 crore. The steep loss in FY22 was due to an accounting change.
- Bluestone attracted investments from top global VC firms and prominent investors like Accel, Nikhil Kamath, InfoEdge Ventures, and Hero Enterprises.
- In 2023, the Indian jewellery market generated $76.77 billion in revenue, surpassing China, USA, Japan and Russia. The industry is expected to maintain a CAGR of 4.93% till 2026, solidifying India’s dominance in the global jewellery market.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
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