Bluestone in talks to raise US$100 million in pre-IPO round at over US$1 billion valuation

Omnichannel jewellery retailer Bluestone is in discussions to raise approximately US$100 million in a pre-IPO round, potentially valuing the startup at more than US$1 billion and elevating it to unicorn status, according to three people familiar with the matter. This valuation would be a significant increase from its previous valuation of around $450 million in September 2023, when the company raised $65 million from a group of investors, including Zomato founder Deepinder Goyal and Zerodha's Nikhil Kamath.

Transaction snapshot

  • Deal value: $100 million
  • Deal multiples: N/A
  • Deal type: Pre-IPO round
  • Investors: Interest from new and existing investors

Bluestone's pre-IPO round is attracting interest from both new and existing investors, encouraged by the Tata Group's acquisition of CaratLane last year, where Titan bought out founder Mithun Sacheti's stake. As the second-largest omnichannel jewellery retailer behind CaratLane, Bluestone has indicated to investors its plan to achieve profitability by March 2025.

Multiple bids have been received to lead the new round, with some offers exceeding $1 billion. The company has been meeting with both public and private market investors in recent weeks, as the omnichannel model is now better understood and the potential for profitable scaling is more widely accepted. The round may also involve some early investors selling a portion of their holdings.

Besides Bluestone, silver jewellery startup Giva raised $35 million in a round led by Wipro founder Azim Premji's family office, Premji Invest, last year. Giva is also planning a $272 million IPO this year and has started engaging with merchant bankers.

Bluestone has significantly expanded its offline retail presence over the past year, with around 200 stores across the country currently and plans to have 500-600 stores in the next few years. Data shows that offline stores build brand credibility and drive online sales as well. Search volume online also helps identify locations for store openings.

The company reported $107 million in operating revenue in FY23, up from $65 million the previous year, while reducing its loss to $23 million from $172 million. The steep loss in FY22 was due to an accounting change. In FY22, Bluestone grew nearly 90% after a flat year of growth in FY21.

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