A growing number of modern entrepreneurs from different industries are preparing to go public as the Indian IPO trend picks up steam. BlueStone, an omnichannel jewelry startup, is getting ready to enter the race, following in the footsteps of businesses like as Swiggy, Ather Energy, and BlackBuck. With intentions to generate $200–250 million (₹1,681-2,100 crore) through its initial public offering (IPO), the Prosus-backed jewelry store is scheduled to make its public debut by the second quarter of 2025. This will be a big milestone for the Indian jewelry sector.
Credits: The Economic Times
BlueStone’s IPO Plans: A First for Indian Jewellery Startups
As the first-ever IPO for a modern jewelry business in India, BlueStone’s will be the first of its kind to happen on the stock exchange. Later this year, the company led by Vidya Nataraj and Gaurav Singh Kushwaha is anticipated to submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). Investment bankers Axis Capital, IIFL Securities, and Kotak Mahindra Capital have reportedly been brought up to oversee the public offering.
The company’s quick rise in India’s cutthroat jewelry sector is likely to earn it a valuation of between $1 and 1.5 billion when it goes public. If all goes as planned, BlueStone will rank among the select few omnichannel companies in the Indian jewelry market to take such a daring step.
Pre-IPO Funding and Growth Trajectory
After raising ₹900 crore from a group of renowned investors that included Peak XV Partners, Prosus, and Steadview Capital, BlueStone concluded a pre-IPO investment round in August 2024. With the help of this round of fundraising, BlueStone almost instantly became a member of the elite unicorn club and saw a significant increase in valuation prior to going public.
It is anticipated that the money raised in this round would support the company’s ambitious expansion strategy and accelerate its growth. With a vast selection of jewelry products—more than 8,000 styles in categories like rings, pendants, and earrings—BlueStone has effectively carved out a niche for itself throughout the years. With more than 200 locations around India, the company uses a combination of owned retail stores and franchises to run its business.
Credits: Mint
Financial Performance: A Look at FY24
BlueStone’s fiscal year 2023–24 (FY24) financials paint a mixed but encouraging picture. The company’s net loss for the year decreased from ₹167.2 crore in FY23 to ₹142.2 crore, a 15% YoY decrease. Even as BlueStone expands its operations, this decrease in losses suggests increased operational effectiveness.
In the meantime, the business’s sales increased dramatically, rising 64% YoY to ₹1,265.8 crore in FY24. This revenue spike demonstrates BlueStone’s robust growth trajectory as it grows its online and physical presence. Notably, in June, the jewelry firm raised an additional ₹100 crore in debt financing from Neo Markets, bolstering its capital structure even more in advance of its initial public offering.
Competition and Market Position
The multichannel jewelry startup BlueStone faces tough competition from both cutting-edge startups and well-established companies. Melorra, GIVA, and CaratLane are its principal competitors; they are all vying for a share of India’s rapidly growing jewelry market. Furthermore, traditional jewelry manufacturers continue to hold a sizable share of the market; as a result, BlueStone needs to stand apart from the competitors.
BlueStone’s omnichannel approach, which combines the convenience of online shopping with the personalized service of conventional brick-and-mortar stores, sets it apart from the competition. By employing this approach, the company has increased the number of its customers and enhanced the recognition of its brand.
Challenges and Opportunities Ahead
BlueStone continues to confront a number of obstacles in the run-up to its initial public offering (IPO). Profitability is one of the main issues. Even while the company has been able to cut its losses, it is still losing money, which may worry some investors. Positive indicators include the startup’s robust revenue growth and the support of well-known investors like Prosus and Accel.
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