Hero Enterprise Backs Jewellery Startup BlueStone With $30 Mn Funding; Valuation Reaches $410 Mn

Omnichannel jewellery brand Bluestone has raised $30 Mn in a funding round led by Hero Enterprise’s Sunil Kant Munjal.

With this, the omnichannel jewellery retailer is now pegged at $410 Mn.

BlueStone will use the funding to ramp up its manufacturing capabilities and to accelerate its pan-India rollout. BlueStone will also use the investment to strengthen its omnichannel presence and to provide a ‘seamless and user-friendly experience’ for its customers, said the jewellery brand.

With the deal now complete, BlueStone plans to launch 100 more stores in the coming fiscal year. Cumulatively, this is expected to take the total number of stores to 300 by 2024.

Speaking on the announcement, BlueStone CEO and founder, Gaurav Singh Kushwaha, said, “With this round of funding, we aim to further strengthen our omnichannel presence to provide a seamless and user-friendly experience to customers who want to utilise both our online and offline platforms to buy jewellery for themselves and their loved ones.”

Echoing the sentiment, Hero Enterprise chairman, Sunil Kant Munjal, said, “BlueStone’s journey over the past decade has been impressive and they have cracked the code on the online-offline dynamics of the industry. The investments made in the business model and products give BlueStone an edge over the competition. We are thrilled to join in this journey and contribute to the exciting road ahead.”

Founded in 2011 by Gaurav SIngh Kushwaha and Vidya Nataraj, BlueStone is an omnichannel jeweller startup that claims to offer more than 8,000 designs across rings, pendants, earrings and other products.

In July 2020,the startup had raised about $2 Mn in its Series E funding round led by Accel. Prior to that, the startup had also raised $1.42 Mn in funding from Avanz Capital in 2020 itself. WIth this, the startup has raised $100 Mn in total from various investors.

The startup is backed by big names like Ratan Tata and slew of other marquee investors including Accel, Kalaari, Iron Pillar, IvyCap and Saama Capital.

The startup currently has around 70 retail stores across the country, with plans to expand its cumulative footprint to 300 stores by 2024.

It estimates that it will record a revenue of INR 500 Cr in the fiscal ending March 2022, a growth of 85% over the previous year. Add to this, BlueStone also says that it is targeting an annual revenue of more than INR 2,000 Cr in the next two years. 

The Indian Jewellery Market Trends

According to a report, India’s gold and diamond trade contributed nearly 7.5% to the country’s Gross Domestic Product (GDP). In addition, the gems and jewellery market is anticipated to grow at a CAGR of 8.34% between FY22 and FY27.

India’s is a huge gems and jewellery market, which is estimated to grow to $78.50 Bn in FY22. This number is further expected to rise to $119.80 Bn by FY27.

Earlier last month, digital first jewellery startup, Aulerth, raised $1.1 Mn in a seed round from M Venture Partners, designer Tarun Tahiliani, among others. In January, another silver jewellery startup, GIVA had raised $10 Mn in funding from investors including Sixth Sense Ventures, among others.