Omnichannel jewellery startup BlueStone to raise $16.5M in debt and equity: Report

BlueStone, an omnichannel jewellery startup, is set to raise approximately $16.5 million through a combination of debt and equity.

According to an Inc42 report, The company's board has approved two resolutions: to secure Rs 100 crore in debt and to raise Rs 37.7 crore in equity by issuing Series G compulsory convertible cumulative preference shares (CCPS) to investors. 

Innoven Capital will provide the debt, while equity will come from a group including Ashwin Kedia, Sankar Bora, and Innoven Capital India, the report said.

Why is BlueStone raising funds?

The report further said the startup will use the raised capital for business operations and expansion plans. The move comes shortly after BlueStone raised $9 million in debt from Trifecta Capital and amid reports of a planned $65 million fundraising effort from various investors at a valuation of approximately $440 million. 

IPO plans

BlueStone is reportedly eyeing a public listing, with plans to raise Rs 2,000 crore through an initial public offering (IPO). The IPO is expected to include both a fresh issue of shares and an offer-for-sale component, allowing existing shareholders to sell a 10-15% stake in the company.

How well BlueStone is performing financially?

In the fiscal year 2023, BlueStone's losses, excluding one-time items, jumped 183% to Rs 167 crore from Rs 59 crore, while its operating revenue increased by 67% to Rs 771 crore. The company, which offers over 8,000 jewellery designs, competes with other new-age startups like GIVA, CaratLane (owned by Tata), and Melorra.

Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, It offers rings, pendants, chains, and earrings made up of gold and diamonds through its retail outlets and website.