Bluestone Raises Rs 100 Crore Debt Ahead of Highly Anticipated IPO

Bluestone Raises Rs 100 Crore Debt Ahead of Highly Anticipated IPO

In a recent development, omnichannel retailer Bluestone has secured Rs 100 crore ($12 million) in debt funding from Neo Markets. This marks Bluestone’s third debt investment this year, underscoring its financial strategy ahead of its anticipated initial public offering (IPO).

According to regulatory filings from the Registrar of Companies, Bluestone’s board passed a special resolution to issue 10,000 debentures priced at Rs 1,00,000 each, facilitating the capital infusion from Neo Markets.

Bluestone, headquartered in Bengaluru, has been gearing up for its IPO, reportedly aiming to raise $100 million in its pre-IPO funding round. This funding is expected to be a combination of primary capital and secondary sales, potentially offering substantial returns to its early investors.

Financial and Strategic Outlook

The company has accumulated approximately $190 million in funding to date, including a significant investment of $66 million from Ranjan Pai and other investors in September last year. Accel holds the largest stake among its investors at 21.2%, followed by Kalari Capital with a 12.35% stake.

Founded in 2011 by Gaurav Singh Kushwaha, Bluestone specializes in a diverse jewelry collection catering to both men and women, distributed through its extensive network of over 190 stores across 75 cities, alongside its online platform.

Performance Highlights

Bluestone has shown promising financial growth, as evidenced by its fiscal year ending March 2023 results. During this period, the company achieved a notable 65% year-on-year revenue increase, totaling Rs 787 crore, while significantly reducing its losses by 87% to Rs 167 crore. The firm is yet to disclose its fiscal year 2024 results.

Competitive Landscape

The company competes directly with brands such as Melorra, Giva, and CaratLane. Titan, which previously owned a majority stake in CaratLane, recently announced its decision to acquire the remaining 0.36% stake for Rs 60.08 crore ($7.2 million).

Bluestone’s strategic moves, including the latest debt financing from Neo Markets, position it favorably as it advances towards its bluestone ipo date, reinforcing its market presence and financial resilience in the competitive jewelry retail sector.