Bangalore-based online jewellery e-tailer Bluestone is set to raise $5.87 million (Rs 38.29 crore) in a fresh round of funding, filings with the Registrar of Companies reveal.
Existing investors Accel Partners, Kalaari Capital, Ivycap Ventures, RB Investments, Iron Pillar Fund and India Infoline Finance Ltd (IIFL), among others, will be participating in the round, the filings showed.
The company has already received Rs 12.75 crore from Iron Pillar and Accel Partners, as per its latest regulatory disclosures. It is not clear whether this is part of a larger funding round.
With this investment, Bluestone is likely to be valued at roughly between Rs 705.91 crore and Rs 731.48 crore ($108.29 million and $112.28 million) post-money, according to a back-of-the-envelope estimate by TechCircle.
Bluestone’s founder and chief executive Gaurav Kushwaha did not immediately respond to email queries, text messages or phone calls from TechCircle seeking clarification at the time of publishing this report.
The development was first reported by YourStory.
Bluestone, run by Bluestone Jewellery and Lifestyle Pvt. Ltd, last raised $30 million in June 2016 from IIFL Holdings Ltd, Accel Partners, Kalaari Capital, RB Investments, Iron Pillar Fund and IvyCap Ventures.
In an interaction with TechCircle last month, Kushwaha said that the company has been allocating a significant outlay for its above-the-line marketing and this trend will carry forward for the next few fiscals as well.
BlueStone recently tied up with popular film actor Alia Bhatt to endorse its brand and has been testing waters with an offline pilot. The company is expected to make an official announcement soon on this, Kushwaha added.
Founded in 2011 by Kushwaha and Vidya Nataraj, BlueStone has raised close to $59 million (Rs 384.61 crore including the latest round) till date from investors, according to VCCEdge, the data research platform of News Corp VCCircle.
Financial performance
The company's investors include Ratan Tata, Accel Partners, IIFL, Iron Pillar Capital Management Ltd, Kalaari Capital, InnoVen Capital India, RB Investments Pte Ltd and IvyCap Ventures.
BlueStone, which says it gets 12,000 to 14,000 orders a month, claims a market share of 45-50% in the nascent online jewellery space. Kushwaha said that the firm will turn profitable in 12 months.
For 2016-17, BlueStone recorded a 12% rise in net sales at Rs 112.53 crore ($17.6 million), up from Rs 100.46 crore ($15.7 million) in the previous financial year.
Total expenses registered a 22% rise at Rs 212.33 crore ($33.2 million, up from Rs 174 crore ($27.2 million), primarily on the back of employee costs, which stood at Rs 48.12 crore ($7.5 million) and advertising costs, which were Rs 34.83 crore ($5.4 million), accounting for nearly 40% of its expenses.
Consequently, net losses widened to Rs 96.89 crore ($15.1 million) for 2016-17, up from Rs 70.55 crore ($11 million) in the previous financial year.
(This report has been updated to correct the erroneous figures on Bluestone's valuation post the proposed fund infusion.)