BlueStone secures $9 million in debt funding from Trifecta Capital

BlueStone, an omnichannel jewellery startup, has recently made significant moves in its fundraising and expansion plans. The startup is raising funds to support its business operations and fuel its expansion endeavours. Reports indicate that BlueStone is seeking to raise approximately $65 million from investors, including Nikhil Kamath, at a valuation of $440 million. In a recent development, BlueStone has secured $9 million (about INR 75 crore) in debt financing from venture capital firm Trifecta Capital.

The Bengaluru-based startup’s board of directors approved the issuance of ‘Series X1 Debentures to Trifecta Venture Debt Fund-III for this amount. This capital infusion is intended for the startup’s ongoing operations and expansion initiatives. This funding initiative follows earlier reports indicating BlueStone’s intention to raise $65 million (approximately INR 550 crore) from various investors, including notable names like Deepinder Goyal, Info Edge, and Ranjan Pai, at a valuation of around INR 3,600 crore ($440 million).

BlueStone’s ambitious plans also include going public, with an IPO aimed at raising approximately INR 2,000 crore. The IPO is expected to consist of a fresh issue of shares and an offer-for-sale component, through which existing shareholders plan to offload 10-15% of their stake in the startup. Established in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, BlueStone is known for its diverse jewellery designs, offering over 8,000 options across rings, pendants, earrings, and more. Last year, the startup elevated Sudeep Nagar, its chief operating officer, to co-founder. In a funding round led by Hero Enterprises’ Sunil Kant Munjal in March 2022, BlueStone raised $30 million.

However, despite its fundraising successes, the startup reported a significant increase in net loss, excluding one-time expenses, from INR 59 crore in FY22 to INR 167 crore in FY23. BlueStone experienced a notable 67% increase on the revenue front, reaching INR 771 crore in FY23 from INR 461 crore in FY22.

BlueStone operates in a competitive landscape, facing rivals such as CaratLane, Melorra, and GIVA. Notably, Tata Group’s Titan acquired the remaining 27% stake in Caratlane for INR 4,621 crore last year, highlighting the consolidation within the industry. Additionally, GIVA secured $33 million in its Series B funding round led by Premji Invest in July 2023, indicating continued investor interest in the sector.