Dutch investment powerhouse Prosus is on the brink of leading a colossal $100 million funding round for the omni-channel jewellery startup BlueStone, sources reveal. This substantial investment is expected to skyrocket BlueStone’s valuation to an astounding $960 million, more than double its previous valuation of $440 million in September 2023.
The funding round will consist of both primary and secondary share sales. Notable VC firms such as Peak XV Partners, Steadview Capital, and Think Investments are also expected to participate. BlueStone is anticipated to secure around $60 million in primary capital, which will be reinvested into business operations, while the remainder will involve early investors selling a portion of their shares.
If finalized, this funding will follow Zepto’s recent $665 million raise, valued at $3.6 billion, underscoring a significant movement in the industry despite a generally subdued deal environment.
Prosus’s Strategic Move
This deal marks a significant milestone for Prosus, which has already invested over $7 billion in unicorns like Meesho and Swiggy. It represents Prosus’s first substantial late-stage investment since mid-2022, having recently focused on Series A deals with companies like Spotdraft and Virgio, as well as supporting portfolio startups such as Urban Company and Captain Fresh.
BlueStone’s Growth Trajectory
BlueStone has shown impressive growth, reporting Rs 788 crore in operating revenue for FY23, a significant increase from Rs 476 crore in FY22. The company has also managed to reduce its losses to Rs 167 crore from Rs 1,268 crore in the previous fiscal year.
Funding Trends in the Indian Tech Ecosystem
According to Tracxn data, the first half of 2024 saw a 13% decline in funding for domestic tech startups, amounting to $4.1 billion compared to $4.8 billion in the same period last year. The number of funding rounds also dropped by 54%, from 989 to 540. However, when compared to the second half of 2023, there has been a slight improvement, with overall funding increasing by 4% from $3.96 billion.
April 2024 recorded the highest monthly funding of $862 million, while January 2023 saw the highest funding of $1.41 billion in H1. This year has seen eight $100 million-plus funding deals, with notable companies like Flipkart, Apollo 24|7, and Meesho raising significant amounts.
- What are your thoughts on Prosus’s decision to lead a $100 million funding round for BlueStone? How do you think this will impact the jewellery startup’s growth?
- With BlueStone’s valuation more than doubling, what factors do you believe contributed to such a significant increase?
- How do you perceive the current funding landscape for tech startups in India, given the recent decline in funding rounds but slight overall funding increase?
- In what ways do you think BlueStone’s expansion plans will benefit from this new capital infusion?
- What are your predictions for Prosus’s future investment strategies in the Indian market, given their recent focus on early-stage deals and portfolio support?
