Bangalore-based online jewellery startup BlueStone has raised nearly US$30 million (INR 200 CR) in a round led by led by IIFL and Accel along with Kalaari Capital, RB Investments and IvyCap Ventures. This brings its total funding received to US$60 million.
The funding will be used to grow BlueStone’s offerings and ramp up marketing initiatives to strengthen its leadership position.
Established in 2011 by Founder and CEO Gaurav Singh Kushwaha, BlueStone’s store currently features over 5,000 unique jewellery designs and ships to over 20,000 pin codes in the Bangalore. All of its design, manufacturing and logistics capabilities are built in-house — allowing it adapt its designs to market trends quickly.
BlueStone plans to scale to 30,000 designs in the next three years.
“We are now targeting a four-fold increase in revenues to touch Rs 1000 crore (US$100 million) by 2018 and we want to achieve this goal in a profitable and sustainable manner. The new round of investments underscores the success of the company’s vertically integrated full stack online first business model and the enormous untapped potential in the jewellery category,” said Kushwaha, in an official press statement.
BlueStone had earlier raised funds from Accel Partners, Kalaari Capital, Dragoneer Investment Group, IvyCap Ventures and Saama Capital. Ratan Tata and Meena Ganesh (CEO of Portea) have also invested in the company.
Currently, much of India’s jewellery transactions still takes place in brick-and-mortar shops. Online sales contribute to less than 0.5 per cent. It is, however, expected to grow five times YoY.