Online jewellery retailer BlueStone is in the process of raising around $30-40 million, sources privy to the development told DEALSTREETASIA.
In July last year, the firm had announced a third round of VC funding, worth Rs 100 crore ($15 million) led by Accel Partners, IvyCap Ventures and Dragoneer, with participation of Kalaari Capital and Saama Capital.
Prior to that, Bluestone had raised $5 million in 2012 from Accel Partners. Two years later it raised another $10 million from Kalaari Capital, Accel Partners and Saama Capital. Subsequently Ratan Tata came onboard as an investor, his second in the e-commerce space.
When contacted, Kalaari Capital and IvyCap declined to comment on the deal. An email sent to Accel Partners did not receive any response. BlueStone also declined to comment on the fund raising.
Bangalore-based Bluestone was founded by IIT graduate Gaurav Singh Kushwaha and Vidya Nataraj in 2011. It sells jewellery targeted at women buyers with its own manufacturing, designs and delivery functions.
It currently offers jewellery products like rings, earrings, pendants, bangles and necklaces among others, made from silver, gold, diamond and gemstones etc. Other than this users can order ‘collections’ or sets of jewellery, gifts and gold coins on the platform.
To compete with local brick and mortar jewellers that continue to dominate the market, BlueStone offers a Home Try-On option, that lets users select the products they like, book an appointment for a visit, and try the jewellery at home.
According to the World Gold Council, Indians bought 662 tonnes of gold jewellery, valued at $26.9 billion, last year. The online retail market for jewellery is expected to rise from $3.5 billion to $6 billion this year according to Gartner. That would still be a small fraction of the overall jewellery market, leaving room for rapid growth.