BlueStone Bags INR 40 Cr In Debt From BlackSoil, Others

Omnichannel jewellery company BlueStone has raised INR 40 Cr (around $ 4.7 Mn) in debt from BlackSoil and Caspian Impact Investments, ahead of its ).

The company’s board has allotted 800 non-convertible debentures at a face value of INR 5,00,000 to raise INR 40,00,00,000, as per its MCA filing assessed by Inc42.

Out of the aforementioned sum, BlueStone has raised INR 20 Cr from Blacksoil India Credit Fund II in exchange for 400 debentures, INR 10 Cr from Blacksoil Capital Private Limited for 200, and INR 10 Cr from Caspian Impact Investments for the same number of securities.

Entrackr reported the development first.

It is pertinent to note that alternative credit provider .

The companies received approval from the Reserve Bank of India (RBI) for their merger but they are awaiting the final merger approval from the National Company Law Tribunal (NCLT), reported last month.

Meanwhile, BlueStone’s debt funding comes amid its attempt to make a debut on bourses. The Bengaluru-based company filed its draft red herring prospectus (DRHP) with markets regulator SEBI for INR 1000 Cr IPO in December last year.

Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, BlueStone is an omnichannel jewellery company that offers more than 8,000 designs across rings, pendants, earrings and other products.

It owns some of its retail stores and operates the rest via a franchise model. It claims to have over 200 retail stores spread across the country.

It competes with the likes of CaratLane, GIVA, and other legacy jewellery brands.

BlueStone’s IPO Rush

The omnichannel jewellery platform is in the process to launch its IPO which will comprise a fresh issue of shares worth INR 1,000 Cr and an offer-for-sale component of up to 2.40 Cr equity shares.

will use the fresh proceeds from the IPO to fund its working capital requirements and general corporate purposes.

Of the total fresh issue, INR 750 Cr will be deployed to meet working capital requirements. The remaining INR 250 Cr will be used for general corporate purposes like setting up of stores, repayment/prepayment of loans, strategic initiatives, partnership and joint ventures, among others.

Notably, existing investors, including Accel and Kalaari Capital, will offload their shares in the IPO. While Kalaari will sell up to 79.78 Lakh shares via two funds, Saama Capital will sell 41 Lakh shares. IvyCap Ventures will offload 31.26 Lakh shares, while Accel India will sell 30.27 Lakh shares. Iron Pillar will dump 17.53 Lakh shares.

Hero Enterprise chairman Sunil Kant Munjal will also sell 40 Lakh shares via the OFS.

In a recent development, and gave it a go ahead by issuing an observation letter to the company.

On the financial front, BlueStone’s net loss declined 15% year-on-year (YoY) to INR 142.2 Cr in the financial year 2023-24 (FY24), while operating revenue jumped 64% to INR 1,265.8 Cr.

The company also disclosed its financial performance for the first three months of FY25 (Q1 FY25). It reported a net loss of INR 52.22 Cr in Q1 FY25 on an operating revenue of INR 359.19 Cr. Total expenses for the quarter ending June 2024 stood at INR 418.14 Cr.

In June last year, the startup from Neo Markets.

Overall, BlueStone has raised a total funding of over $200 Mn till date. It counts the likes of Accel, Kalaari Capital, Ratan Tata, Deepinder Goyal, and Nikhil Kamath among its backers.

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