Ratan Tata-Backed BlueStone Earned INR 771 Cr By Selling Jewellery In FY23

Omnichannel jewellery brand BlueStone’s operating revenue increased over 1.6X in the financial year ended March 31, 2023. The Bengaluru-based startup reported an operating revenue of INR 770.7 Cr in the financial year 2022-23 (FY23), an increase of 67% from INR 461.3 Cr in the previous fiscal year. 

Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, Bluestone is an omnichannel jewellery startup that claims to offer more than 8,000 designs across rings, pendants, earrings and other products. Last year, the startup elevated its chief operating officer Sudeep Nagar as the cofounder. 

BlueStone earns revenue by selling its jewellery online and through retail stores. It has its own retail stores as well as franchise-operated stores. 

The startup’s loss plunged 86% to INR 167.2 Cr from INR 1,268.4 Cr in FY22. However, it needs to be mentioned that BlueStone incurred a one-time non-operating expense of INR 1,209 Cr in FY22 following a change in fair value of shares due to the adoption of a new accounting policy. This cost was nil in FY23. Excluding the one-time expense of FY22, BlueStone’s net loss surged 183% in FY23 from INR 59 Cr in FY22.

Where Did BlueStone Spend? 

The jewellery startup’s total expense declined 45% to INR 955.1 Cr in FY23 from INR 1,739 Cr in FY22. Again, this decline was led by the absence of the one-time non-operating expense during the year under review.

Procurement Cost The Biggest Expense: BlueStone spent INR 717.6 Cr on procurement of raw materials in FY23, an increase of 89% from INR 380.5 Cr in the previous fiscal year, indicating a higher demand. 

Employee Expenses Rise: The startup spent INR 91.1 Cr on employee costs in FY23, a jump of 118% from INR 41.7 Cr in FY22. According to LinkedIn, the startup currently has an employee count of 1,110.

Marketing Expenses Double: The jewellery brand’s advertising and marketing spend almost doubled to INR 84.1 Cr during the year under review from INR 42.3 Cr in FY22.

BlueStone has raised over $100 Mn to date and counts the likes of Ratan Tata, Hero Enterprises, Accel Partners, IIFL Finance, and Kalaari Capital among its backers. Last year, the startup raised $30 Mn from Hero Enterprise’s Sunil Kant Munjal at a valuation of around $400 Mn. 

As per an ET report, BlueStone is currently in advanced discussions to raise around $65 Mn in a fresh funding round from Nikhil Kamath’s office, Deepinder Goyal, Amit Jain, Ranjan Pai, among others at a valuation of about INR 3,600 Cr. This valuation translates to 4.6X of its operating revenue in FY23. 

BlueStone competes against the likes of CaratLane, Melorra, and GIVA in the startup ecosystem. Among the competitors, Tata acquired the remaining 27% stake in Caratlane for a sum of INR 4,621 Cr in August this year. Meanwhile, GIVA bagged $33 Mn in its Series B funding round led by Premji Invest in July.