Omnichannel jewellery retailer Bluestone has successfully raised Rs 100 crore (approximately $12 million) in debt from Neo Markets. This marks the third instance of debt financing for the Bengaluru-based company this year.
According to regulatory filings sourced from the Registrar of Companies, Bluestone’s board has approved a special resolution to issue 10,000 debentures, each valued at Rs 1,00,000, to secure this funding.
This capital influx comes as Bluestone, backed by Peak XV Partners, reportedly plans to raise $100 million in a pre-IPO round. The pre-IPO funding is expected to be a combination of primary and secondary investments, potentially providing substantial returns to early investors.
To date, Bluestone has amassed around $190 million in funding, including a notable $66 million investment from Ranjan Pai and others in September last year. Accel is Bluestone’s largest investor, holding a 21.2% stake, followed by Kalari Capital with a 12.35% stake.
Founded in 2011 by Gaurav Singh Kushwaha, Bluestone offers a wide array of jewellery for both men and women, available through its website and an extensive network of offline stores. The company operates over 190 stores across 75 cities, according to its website.
Bluestone demonstrated significant growth in the fiscal year ending March 2023, achieving a 65% year-on-year increase in revenue, which stood at Rs 787 crore. Concurrently, the company’s losses dramatically reduced by 87% to Rs 167 crore. The annual results for FY24 are yet to be filed.
In the competitive landscape, Bluestone faces direct competition from Melorra, Giva, and CaratLane. Notably, Titan, which held a 99.64% stake in CaratLane, recently announced the acquisition of the remaining 0.36% stake for Rs 60.08 crore ($7.2 million).
As Bluestone prepares for its IPO, this latest debt funding from Neo Markets is expected to bolster its financial position and support its continued expansion and operational goals.
