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Bluestone Raises Rs 900 Crore, Doubling Valuation Ahead of IPO

SUMMARY

1. Bluestone, a jewellery retailer, raised Rs 900 crore in a financing round, doubling its valuation to $970 million as it prepares for an IPO later this year, with major investments from Prosus, Peak XV Partners, and others.

2. The company plans to aggressively expand its offline presence, targeting 400 stores within 18 months, while its strong financial performance positions it for a successful public offering.

Jewellery retailer Bluestone has successfully closed a significant Rs 900-crore financing round, catapulting its valuation to $970 million (approximately Rs 8,100 crore). This latest round marks a pivotal moment for the IPO-bound company, setting the stage for its upcoming public offering.

The funding round, which includes both primary capital infusion and secondary share sales, attracted prominent investors like Prosus, Peak XV Partners, Steadview Capital, Think Investments, and Pratithi Investments. According to sources close to the deal, Prosus led the round with an investment of Rs 350 crore, while Peak XV Partners and Steadview Capital each contributed over Rs 200 crore.

Kalaari Capital’s Strategic Partial Exit

One of the early backers of Bluestone, Kalaari Capital, has partially exited its investment, earning around Rs 300 crore by selling nearly half of its stake. This partial exit comes after Kalaari held a 12.3% stake in Bluestone as of September 2023, according to data from Tracxn.

IPO Plans in Motion

With this funding round concluded, Bluestone is now gearing up to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) later this year. This move is a significant step in Bluestone's journey, as the pre-IPO round was crucial in setting the valuation benchmark for the company.

Sources indicate that Bluestone has been working diligently over the past few quarters, engaging with public market investors to ensure a smooth transition into the public domain. The company aims to capitalize on the growing interest in omnichannel jewellery platforms, especially after the Caratlane acquisition by Titan last year.

Aggressive Expansion Plans on the Horizon

Bluestone's recent capital infusion will fuel its ambitious expansion strategy. Currently operating 220 offline stores, the company plans to double this number to 400 within the next 12-18 months. This aggressive growth strategy underscores Bluestone's commitment to deepening its market presence and reaching a wider audience.

Financial Performance and Future Prospects

Bluestone has shown remarkable financial growth, closing FY24 with an estimated revenue of Rs 1,200 crore and a positive EBITDA of Rs 3 crore. This marks a significant improvement from FY23, where the company reported Rs 788 crore in operating revenue and managed to reduce its losses to Rs 167 crore from Rs 1,268 crore in FY22.

Looking ahead, Bluestone is poised for a Rs 2,000-crore IPO, with engagements already underway with merchant bankers. The company’s founder, Gaurav Singh Kushwaha, has been in active discussions with private and public market investors, signaling Bluestone’s readiness to enter the public markets.