BlueStone, an omnichannel jewellery startup, is currently in the process of raising $9 million (about INR 75 crore) in debt from venture capital firm Trifecta Capital. Last month, the board of directors of the Bengaluru-based startup approved the allocation of ‘Series X1 Debentures’ to Trifecta Venture Debt Fund-III for the aforementioned amount.
The startup plans to use the capital to support its business operations and finance its expansion initiatives.
The latest development follows reports from several months ago indicating that the startup aimed to raise approximately $65 million or INR 550 crore from various investors, including Nikhil Kamath, Deepinder Goyal (the founder of Zomato), Info Edge, and Ranjan Pai from the Manipal Group. This funding round was proposed at a valuation of around INR 3,600 crore or roughly $440 million.
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According to a report by ET, the startup is exploring the possibility of going public and aims to raise INR 2,000 crore through its initial public offering (IPO). The IPO will include both a fresh issue of shares and an offer-for-sale component, wherein existing shareholders are expected to collectively sell a 10-15% stake in the startup.
Established in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, BlueStone is an omnichannel jewellery startup renowned for its vast collection of over 8,000 designs spanning rings, pendants, earrings, and various other products. In a significant move last year, the startup promoted its chief operating officer, Sudeep Nagar, to the position of co-founder.
During March 2022, BlueStone secured a $30 million funding round spearheaded by Sunil Kant Munjal of Hero Enterprises.
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The startup’s net loss, excluding one-time expenses, soared by 183% to INR 167 crore in FY23 from INR 59 crore in FY22. However, operating revenue surged by 67% to INR 771 crore from INR 461 crore in FY22.
In the startup landscape, BlueStone rivals companies such as CaratLane, Melorra, and GIVA.
In its competitive sphere, Tata Group’s Titan acquired the remaining 27% stake in Caratlane for INR 4,621 crore last year. Concurrently, GIVA secured $33 million in its Series B funding round spearheaded by Premji Invest in July 2023.