Jewellery retailer Bluestone has successfully secured a Rs 900-crore financing round, significantly increasing the company’s valuation to $970 million, or Rs 8,100 crore. The company is preparing to file the draft red herring prospectus for its initial public offering (IPO) with the stock market regulator within this calendar year, following the closure of its pre-IPO round aimed at setting the valuation benchmark.
This funding round saw participation from several notable investors, including Peak XV Partners, Prosus, Steadview Capital, Think Investments, and Pratithi Investments, the family investment office of Infosys cofounder Kris Gopalakrishnan. Of the total Rs 900 crore raised, Rs 600 crore was infused as primary capital, while the remaining Rs 300 crore came from a secondary share sale. Prosus contributed approximately Rs 350 crore, with Peak XV Partners and Steadview Capital each investing over Rs 200 crore.
Kalaari Capital, one of Bluestone’s early investors, made a partial exit by selling about half of its stake, earning around Rs 300 crore. Kalaari held a 12.3% stake in Bluestone after the last funding round in September 2023. Other investors in the company, including Iron Pillar, Saama Capital, RB Investments, IvyCap, and InfoEdge Ventures, collectively hold about 20% of the firm. Founders Gaurav Singh Kushwaha and Ganesh Krishnan own nearly 14%.
The secondary share sale involved a transaction between two investors, with no funds going directly to the company, unlike a primary share sale. This round was primarily aimed at setting the pre-IPO pricing as Bluestone aims to go public as soon as possible, having worked on this process for several quarters.
In terms of financial performance, Bluestone is estimated to have closed FY24 with Rs 1,200 crore in revenue and Rs 3 crore in EBITDA. The company, founded in 2011, reported Rs 788 crore in operating revenue for FY23, an increase from Rs 477 crore the previous year, while reducing its losses to Rs 167 crore from Rs 1,268 crore. The significant loss in FY22 was attributed to an accounting change, with the company growing nearly 90% in that fiscal year following a flat growth period in FY21.
Bluestone is planning a Rs 2,000-crore IPO this year and has initiated discussions with merchant bankers. Founder Gaurav Singh Kushwaha has been engaging with both private and public market investors in preparation for the IPO.
