BlueStone, the omnichannel jewelry brand, saw a significant surge in its operating revenue, marking a growth of over 1.6 times in the fiscal year ending on March 31, 2023. This Bengaluru-based startup reported an operating revenue of INR 770.7 crore in the financial year 2022-23 (FY23), signifying a notable 67% increase from INR 461.3 crore in the preceding fiscal year.
Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, BlueStone is an omnichannel jewelry startup offering more than 8,000 designs across various categories such as rings, pendants, and earrings. Last year, the startup promoted its chief operating officer, Sudeep Nagar, to the position of co-founder.
BlueStone generates revenue by selling its jewelry through online sales and retail outlets. The brand operates its own retail stores in addition to franchise-operated stores.
The startup experienced a drastic 86% decrease in its loss, dropping to INR 167.2 Cr from INR 1,268.4 Cr in FY22. It’s important to note that in FY22, BlueStone faced a one-time non-operating expense of INR 1,209 Cr due to a change in fair value of shares from the adoption of a new accounting policy. This cost was absent in FY23. Excluding the one-time expense from FY22, BlueStone’s net loss increased by 183% in FY23, rising from INR 59 Cr in FY22.
In FY23, the jewelry startup saw a 45% reduction in total expenses, which decreased to INR 955.1 Cr from INR 1,739 Cr in FY22. Once more, this decline was primarily due to the exclusion of the one-time non-operating expense in the current year.
In the fiscal year 2022-23, BlueStone allocated INR 717.6 Cr toward the purchase of raw materials, demonstrating an 89% surge from the INR 380.5 Cr spent in the preceding fiscal period, showcasing increased material demand.
The startup spent INR 91.1 Cr on employee costs in FY23, a jump of 118% from INR 41.7 Cr in FY22. According to LinkedIn, the startup currently has an employee count of 1,110.
The jewelry brand’s expenditure on advertising and marketing nearly doubled, reaching INR 84.1 Cr in the fiscal year being examined, as compared to INR 42.3 Cr in FY22.
To date, BlueStone has secured more than $100 million in funding and boasts notable supporters such as Ratan Tata, Hero Enterprises, Accel Partners, IIFL Finance, and Kalaari Capital. In the previous year, the startup received a $30 million investment from Hero Enterprise’s Sunil Kant Munjal, valuing the company at approximately $400 million.
According to a report by ET, BlueStone is in advanced talks to secure approximately $65 million in new funding from Nikhil Kamath’s office, Deepinder Goyal, Amit Jain, Ranjan Pai, and others. This proposed valuation stands at around INR 3,600 Cr, translating to 4.6 times its operating revenue in FY23.
In the startup landscape, BlueStone rivals companies such as CaratLane, Melorra, and GIVA. Notably, Tata acquired the remaining 27% stake in Caratlane for INR 4,621 Cr in August this year. Meanwhile, GIVA secured $33 million in its Series B funding round, which was spearheaded by Premji Invest in July.