New Delhi: According to two sources familiar with the matter, Temasek Holdings, the Singaporean state investor, is considering investing $100 million for a stake of about 20% in Indian jeweller BlueStone. The investment could value the Bengaluru-based company, which is backed by venture capital firm Accel and Indian industrialist Ratan Tata, at close to $500 million.
One of the sources stated that the investment could assist BlueStone’s ambitious expansion plans in India, the world’s second-largest jewellery consuming nation after China, as demand rebounds post-pandemic. BlueStone, which currently operates over 150 stores, has previously disclosed its plans to open 300 stores by 2024.
BlueStone operates in a highly competitive market, dominated by thousands of small and large independent jewellery stores, as well as branded outlets like Titan Company-owned Tanishq and CaratLane, and Kalyan Jewellers. However, companies like BlueStone and CaratLane also offer online sales, setting them apart from traditional jewellery retailers.
While Temasek’s interest in investing in BlueStone has been previously reported, Reuters is the first to report details of the potential deal’s investment amount, potential valuation, and other financial details. The sources stated that Temasek is currently conducting due diligence on the transaction, and if successful, a deal could be reached as early as July-September.
Temasek has been investing $1 billion annually in India for the past six years, and its underlying exposure to India is $16 billion, which represents over 5% of Temasek’s global $297 billion portfolio, according to its India head Ravi Lambah. The potential deal talks also come at a time when many Indian startups are struggling to raise fresh funds, resulting in delayed IPOs and job cuts as investors question their sky-high valuations.
According to data firm CB Insights, startups raised just $2 billion in the first quarter of 2023, a 75% decrease from the same period last year. Neither Temasek nor BlueStone’s CEO Gaurav Kushwaha immediately responded to Reuters’ request for comment.
