Bluestone set to close Rs 550-crore funding; Nikhil Kamath to infuse Rs 100 crore

Bluestone set to close Rs 550-crore funding; Nikhil Kamath to infuse Rs 100 crore

Nikhil Kamath’s planned investment of Rs 100 crore in Bluestone, an omnichannel jewelry retailer, underscores his interest in the company’s growth potential in the jewelry retail sector. As the co-founder of Zerodha, one of India’s leading online stock brokerage firms, Kamath has a track record of entrepreneurial success in the financial and technology sectors. His decision to invest in Bluestone signals his belief in the company’s business model and the opportunities presented by the jewelry retail market.

Furthermore, the participation of other prominent figures such as Deepinder Goyal and Amit Jain, both known for their roles in building Zomato into a global food delivery and restaurant discovery platform, as well as financial services firm IIFL, adds credibility and financial support to Bluestone’s expansion plans.

This investment is indicative of the competitive dynamics within the omnichannel jewelry retail sector in India, where established entrepreneurs and financial firms are recognizing the potential for growth and innovation. Bluestone’s strategy of combining online and offline retail channels appears to align with the changing consumer preferences in the jewelry market, and the infusion of capital from investors like Nikhil Kamath is expected to further fuel the company’s growth and expansion efforts.

Bluestone’s founder and CEO, Gaurav Singh Kushwaha, confirmed this development and mentioned that the company is in the final stages of securing a funding round worth approximately $65 million (around Rs 550 crore). This funding round is expected to value Bluestone at around Rs 3,600 crore (approximately $440 million). The investment underscores the growing competition and interest in the jewelry retail space, with established entrepreneurs and financial firms showing confidence in Bluestone’s potential for growth and success.

In addition to Nikhil Kamath’s Rs 100 crore investment, Ranjan Pai, Chairman of the Manipal Group, and Info Edge Ventures are also participating in the funding round, contributing around Rs 100 crore each. Existing investors are reportedly continuing their participation in this funding round as well, as confirmed by Gaurav Singh Kushwaha, Bluestone’s founder and CEO.

This latest round of financing for Bluestone comes in the wake of Tata Group’s Titan acquiring the stake held by Mithun Sacheti, the founder of CaratLane, a rival omnichannel jewelry retailer. Titan’s acquisition valued CaratLane at approximately $2 billion. The heightened activity and investment in the omnichannel jewelry retail sector indicate the attractiveness of this market segment and the potential for growth in the industry.

Bluestone had previously secured $30 million in funding from the family office of Sunil Kant Munjal, of the Hero Group. This funding round had valued the company at $378 million. These recent investments and valuations illustrate the competitive landscape and growing investment interest in the omnichannel jewelry retail sector in India.

Bluestone’s expansion strategy is centered on leveraging its successful omnichannel approach. The company currently operates 175 stores, and Gaurav Singh Kushwaha, the CEO of Bluestone, expressed plans to further expand this footprint, with aspirations to eventually have 500-600 stores. This expansion strategy reflects Bluestone’s confidence in the omnichannel model and its potential for growth in the Indian jewelry retail market.

Gaurav Singh Kushwaha highlighted the considerable traction that Bluestone has been experiencing across various cities, ranging from tier 1 to tier 3. This indicates the broad market appeal of Bluestone’s offerings and suggests substantial growth opportunities for the company.

A significant portion of the recently secured capital will be directed toward expanding Bluestone’s omnichannel presence. Additionally, the company intends to invest in technology to facilitate seamless integration and optimize its operations. This strategic allocation of funds reflects Bluestone’s commitment to enhancing its presence and capabilities in both the online and offline jewelry retail sectors.

Bluestone, established in 2011, has evolved its business model over the past 18 months, placing greater emphasis on establishing a physical retail presence alongside its existing online operations. This shift in strategy has contributed to the company’s growth and success in the omnichannel jewelry retail sector.