Bluestone, the omnichannel jewellery startup based in Bengaluru, has received approval from its board to proceed with its much-anticipated initial public offering (IPO). The company, known for its seamless integration of online and offline sales channels, aims to raise INR 1,000 crore (approximately $118.2 million) through the IPO. With an estimated valuation between INR 12,000-13,000 crore (around $1.4-1.5 billion), Bluestone’s entry into the public market marks a significant milestone in its growth journey.
IPO Details and Valuation
The Bengaluru-based jewellery startup plans to offload a 15% stake in the company through the offer-for-sale component of the IPO, as reported by Economic Times. Bluestone’s IPO is expected to generate significant interest due to its innovative approach in the jewellery industry, combining both online and offline channels to reach a diverse customer base. The company’s valuation, which places it in the high-growth segment of the consumer goods market, reflects investor confidence in its business model and growth prospects.
Bluestone’s business strategy revolves around offering a wide range of affordable, high-quality jewellery with the convenience of a robust online platform, along with physical stores for customers seeking a more personalized shopping experience. The company’s strong focus on customer satisfaction, convenience, and product quality has helped it carve a niche in India’s highly competitive jewellery market, making it an attractive investment opportunity.
Prosus-Backed Startup
Bluestone is backed by Prosus, a global consumer tech investor, which adds credibility and strength to its financial backing. Prosus’s involvement has not only provided Bluestone with necessary funding but has also helped the startup scale its operations and expand its product offerings. Prosus’s support has been instrumental in Bluestone’s growth and its ability to capture market share in the online jewellery space.
The company’s omnichannel approach, which blends the advantages of online retail with the trust factor of offline stores, has enabled Bluestone to differentiate itself from traditional jewellery retailers. The digital platform allows customers to explore, select, and purchase jewellery at their convenience, while the physical stores offer a tactile, in-person shopping experience. This model is expected to play a significant role in Bluestone’s long-term success.
Promoter Stake and CEO Investment
In a notable move, Bluestone’s cofounder and CEO, Gaurav Singh Kushwaha, has increased his stake in the company by purchasing an additional INR 75 crore worth of shares. This investment was made to meet the “minimum promoter contribution requirement,” as per regulatory filings. As a result, Kushwaha now holds between 17-18% of the company, reinforcing his commitment to Bluestone’s future growth and success.
This strategic decision by Kushwaha not only strengthens his position within the company but also signals confidence in Bluestone’s upcoming IPO and its ability to deliver value to investors. The increase in promoter stake underscores the company’s readiness for the next phase of its journey, as it seeks to expand its presence in both the domestic and international jewellery markets.
Looking Ahead
Bluestone’s decision to launch an IPO comes at a time when India’s online jewellery market is experiencing significant growth, driven by rising disposable incomes, increased smartphone penetration, and changing consumer preferences. As Bluestone moves forward with its IPO plans, it is poised to tap into the growing demand for both traditional and contemporary jewellery designs, while benefiting from its strong brand presence and loyal customer base.
The filing of the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) is expected in the coming week, marking the next step in the IPO process. As Bluestone prepares to take its business to the public market, it remains to be seen how the market will respond to its offering. However, with a solid business model, strong investor backing, and a promising growth trajectory, Bluestone is well-positioned to succeed in the competitive landscape of India’s jewellery industry.
