Bluestone is set to receive a significant $100 million investment led by Dutch investment group Prosus. This funding round, involving venture capital firms such as Peak XV Partners, Steadview Capital, and Think Investments, includes a mix of primary and secondary share sales. The primary capital injection of $60 million will be utilised to enhance Bluestone’s business operations and growth trajectory, while the remaining funds will facilitate early investors to sell a portion of their shares.
Implications for Bluestone’s Growth
This funding round is poised to support Bluestone’s growth, with the company’s valuation expected to exceed $960 million, an increase from $440 million in September 2023. Bluestone’s revenue has shown a steady increase, projected to rise from Rs 100 crore in FY16 to Rs 1,200 crore in FY24. The fresh capital will enable Bluestone to strengthen its market position, expand its product offerings, and support its expansion plans, potentially including regional growth and technological advancements.
Strategic Importance for Prosus
For Prosus, this investment marks its first late-stage bet since mid-2022, indicating a renewed interest in supporting established firms with promising growth prospects. Prosus, known for its significant investments in Indian unicorns like Meesho and Swiggy, has been less active in late-stage deals compared to peers such as SoftBank and Tiger Global. By leading this round, Prosus is diversifying its portfolio, adding the jewellery sector to its existing investments in meal delivery and e-commerce.
Impact on the Indian Startup Ecosystem
Bluestone’s successful funding round underscores the robustness of India’s startup ecosystem, following notable investments like Zepto’s $665 million raise. Such investments signal global investors’ confidence in Indian startups and their economic potential. This trend may set a benchmark for valuation multiples in the jewellery sector, potentially attracting more investors to similar companies. Bluestone’s valuation at 7-8 times its revenue could lead to a revaluation of other players in the industry, enhancing investor interest and funding opportunities.
Competitive Landscape and Market Dynamics
The Indian jewellery sector is witnessing significant activity, highlighted by Titan’s recent acquisition of a further 27% stake in CaratLane at a $2 billion valuation. With new capital, Bluestone is better positioned to compete with established companies like CaratLane and emerging players like Giva. The focus on omnichannel strategies, which blend online and offline retail, is crucial for gaining market share. Bluestone’s technological capabilities, supported by the new funding, will be important for delivering a seamless cross-platform shopping experience to customers.
