For Next Year's Public Markets, BlueStone Names Axis, IIFL, and Kotak

Nitin Konde, Varun Bhardwaj

Oct 16, 2024 — 2 min read

BlueStone Announces Axis, IIFL, Kotak for Upcoming IPO

In order to assist with its intended $250 million (INR 2,000 crore) initial public offering by the second quarter of next year, the new-age jeweller startup BlueStone has reportedly recruited Axis Capital, IIFL Securities, and Kotak Mahindra Capital Co., according to a media source.

The company plans to submit its papers later this year, according to a media report, and the IPO is expected to be between $200 and $250 million in size, with a valuation of $1 to 1.5 billion. If all goes according to plan, the IPO will probably be the first by a new age jewellery company.

Pre-IPO Funding of BlueStone

A media site reported that BlueStone closed an INR 900 crore pre-IPO investment round in August, more than doubling its worth to $970 million. One of the early investors, Kalaari Capital, sold a portion of its stock in the round, which consisted of a combination of primary and secondary transactions. In February, BlueStone intended to go public with an IPO for INR 2,000 crore.

Competing with Melorra, Giva, and CaratLane, it is operated under the parent company's name, BlueStone Jewellery and Lifestyle Pvt Ltd. The last year has seen a surge in investment activity in India's new-age jewellery market. While Giva concluded a INR 255 crore fundraising round earlier this week, Melorra got a bid to be acquired by Kolkata-based jeweller Senco Gold Ltd., which went public last year. In February, Titan acquired the remaining shares of CaratLane, converting it into a fully owned subsidiary.

Growing voluntary incomes and a growth in the number of young middle-class people are driving investor interest in this industry. In contrast to traditional enterprises like Malabar Gold & Diamonds and Kalyan Jewellers, who still control a large portion of the wedding jewellery market, this has helped new-age businesses.

Expansion Curve of BlueStone

BlueStone was founded in 2011 by Gaurav Singh Kushwaha, Sudeep Nagar, and Ganesh Krishnan. The company sells jewellery, including nose pins, bangles, bracelets, rings, earrings, chains, and pendants. Prior to opening shopfronts in 2018, the business exclusively operated online. It already operates more than 200 stores around India, and as more people use hybrid payment options, the number will rise. The company has been able to tighten cost management by localising design, manufacturing, and production.

From INR 787.8 crore in FY23 to INR 1,303.4 crore in FY24, BlueStone's revenue increased by 65%. Its INR142.2 crore loss narrowed by nearly 15%. The largest institutional investor in the Bangalore-based startup is Accel; other backers include Prosus, Iron Pillar, Peak XV Partners, and Steadview Capital. In June, Motilal Oswal produced a report estimating the value of India's retail jewellery market for FY24 at approximately $80 billion. Regional and pan-Indian businesses made up organised retail, which accounted for roughly 36-38% of the industry.