Bluestone Raises INR 600 Crore in Funding Led by Prosus

Omnichannel jewelry retailer Bluestone has raised INR 600 crore (approximately $72 million) in its latest funding round, led by Prosus through MIH Investments with participation from Steadview Capital, Think Investments and Pratithi Growth Fund, showcasing strong investor confidence in Bluestone’s growth trajectory.

According to internal filings, Bluestone’s board approved the issuance of 1,03,80,622 Series H compulsory cumulative preference shares at INR 578 per share to raise the capital. Prosus contributed INR 351 crore, while Steadview Capital, Think Investments, and Pratithi Growth Fund invested INR 80 crore, INR 84 crore, and INR 35 crore respectively. The round included 27 other investors, underscoring the broad investor interest in Bluestone’s market potential.

This funding is part of Bluestone’s larger INR 900 crore pre-IPO round, with a portion earmarked for secondary transactions. The fresh capital will support the company’s expansion efforts, ongoing operations, capital expenditure, and other corporate purposes, positioning Bluestone for sustained growth in the competitive jewelry market.

Bluestone, Post-Allotment Valuation and Investor Stakes

Following this round, Bluestone’s post-allotment valuation stands at $972 million. Prosus now holds 4.48 percent, while Steadview, Think Investments and Pratithi Growth Fund own 1.04, 1.10, and 1.08 percent respectively. This highlights Bluestone’s ability to attract a diversified investor base, which is crucial for its long-term growth strategy.

Founded in 2011 by Gaurav Singh Kushwaha, Bluestone has rapidly expanded its footprint with over 190 stores across 75 cities. In the fiscal year ending March 2023, Bluestone achieved a remarkable 65 percent year-on-year revenue growth, reaching INR 787 crore. Additionally, the company significantly reduced its losses by 87 percent, bringing them down to INR 167 crore.

In a highly competitive market, Bluestone’s main rival, CaratLane—a subsidiary of Titan—posted revenues of INR 3,081 crore with a profit of INR 79 crore for FY24. Despite this, Bluestone remains poised for continued growth, with new funding bolstering its ability to innovate and expand.

As Bluestone prepares for its IPO and expansion, this latest funding round will enhance its brand presence and customer engagement efforts, ensuring it remains a key player in the evolving jewelry retail industry.

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