In the conventional jewelry business that is male dominated, BlueStone has transformed the way jewellery is bought in India by incorporating a spirit of technology into selling. After commencing as a pure play online business, Interestingly it has over 200 retail store chains and an inventive try at home model.
Now the company is all set for as a part of expansion another ambitious step – A public listing. By the end of the second quarter next year, the firm looks to draw as much as $200-250 million (INR 1,681-2,100 crore) from its IPO which is expected to value the firm between $1-1.5 billion. Prosus’s support and the efforts of founders Gaurav Singh Kushwaha and Vidya Nataraj are enabling BlueStone to prep and present its documents before the authorities.
With the presence of investment banks such as Axis Capital, IIFL Securities and Kotak Mahindra Capital, it cannot be ruled out that BlueStone’s IPO might also be historic making news as the first Indian jewellery tech start up to stake a claim – a thrilling development for the sector.
Growth and Expansion plans of BlueStone
BlueStone was established in 2011 by Gaurav Singh Kushwaha with an aim to revolutionize the way intrinsic jewellery is sold and it boasts of listing more than 8000 designs from rings, shaped pendants to earrings online.
At present, the brand is operational in over 200 retail stores across the length and breadth of India but plans to double this figure to 400 stores in the next 12 to 18 months. The rapid growth and market presence of Bluesotne’s fully owned and franchise stores has pioneered the development of this hybrid model of business.
Pre-IPO Funding
In the latest funding round, Bluestone, which is an omnichannel jewellery retailer, raised ₹600 crores, mainly through the support of Prosus, which invested ₹351 crore. Other investors who came on board include Steadview Capital, Think Investments, and Pratithi Growth Fund, who put in ₹80 crore, ₹84 crore, and ₹35 crore respectively. The money will be used for growth, functioning and purchasing of assets. Following this funding round, Bluestone’s valuation stood at $972 million with Prosus at 4.48 percent reinvest, whilst Steadview, Think Investments and Pratithi Growth hold 1.04, 1.10 and 1.08 percent respectively.
In the previous round Bluestone mobilised ₹550 crore from investors – Ranjan Pai, Info Edge Ventures, and Nikhil Kamath of Zerodha each contributing ₹100 crore. The remaining ₹250 crore will be raised from Deepinder Goyal of Zomato, Amit Jain of Cardekho, IIFL, and other current investors. The proceeds from the financing will be used for scaling the business and for launching new offline stores.
Financial Performance and Future Outlook
The FY24 financial performance of BlueStone shows the growth of the company’s operations, with operating revenue having risen by 64% to INR 1,265.8 crore, from INR 770.7 crore in FY23. The company was able to make up ground in date from previous periods p18 with a loss decrease of 15% by decreasing losses to INR 142.2 crore. This, however, came at an offshoot since total costs went up as well and by the close of FY24, total costs were reported at INR 1,445.7 crores.
From the perspective of the future, BlueStone projects an increase in operational cash generation through improved revenue from the current and future customers. On the back of very healthy jewellery demand and aggressive retail store expansion, the company will be able to sustain its growth.
The Industry Rivalry: Analysis of GIVA, CaratLane and Others
BlueStone’s hawkish approach is challenged by the likes of GIVA and CaratLane. While GIVA has successfully pulled in INR 255 crore of investment, CaratLane, which is fully owned by Titan has been showing a staggering 50% of annual growth. However, the competition notwithstanding, Bluestone’s ever swelling patronage supported with a strong donor base is well placed to take advantage of the changes occurring in the sector.
Towards the IPO and After
It’s time for the BlueStone team to mount this new journey’s challenges ahead since launching the IPO is only a new beginning for them and not the end. As it strives to achieve similar goals, BlueStone is becoming a first of a new era jewelry company to get listed to the stock exchange in India, urging players like GIVA to also make such a move. Consequently, with strong financial support, aggressive growth strategies and increasing number of effective clients, it looks like the BlueStone is ready to set a new milestone in Indian jewelry worn by women.