While online marketplaces have tightened their wallet due to fund crunch, the online jewellery industry is rolling in cash. The segment which is set to touch $3.6 billion in 3 years is witnessing exponential growth and is gaining wider acceptance.
To supplement e-jewellery market’s growth, several investors and large corporates are investing aggressively.
Bluestone raises Rs 200 crore in fresh round of funding
Ratan Tata backed Bluestone raised Rs. 200 crore in a fresh round of funding from investors IFL, IvyCap Ventures, Accel, Kalaari Capital and RB Investments. Last month in June, IOS reported that the jewellery etailer is in talks with investors to raise more funds.
While talking about the company’s ambitious plans, Gaurav Singh Kushwaha, Founder and CEO, BlueStone shared,
“BlueStone pioneered the category of online fine jewellery in 2011 and in a short span of five years has captured majority market share. We are now targeting a four-fold increase in revenues to touch Rs.1,000 crore by 2018 and want to achieve this goal in a profitable and sustainable manner.”
Titan to acquire 62% stake in CaratKane for Rs. 357 crore
Ratan Tata invested in Bluestone in his personal capacity. On the other hand Tata Group has been investing in another online jewellery player, CaratLane,
Titan Company (watches, jewellery and accessories arm of Tata Group) is looking to acquire 62% shares of CaratLane worth approximately Rs. 357 crore. Regulatory filing by Titan revealed that the company is going to acquire 19,142,545 equity shares.
The report stated,
“Acquisition of a leading brand and business in the jewellery online industry catering to a different segment of customers with significant internal capabilities in design, manufacturing, technology and e-commerce is expected to have high synergies with the jewellery business of Titan Company.”
How will the rival companies utilize the fresh funds? And who will lead India’s online jewellery industry – Ratan Tata-backed Bluestone or Titan backed – CaratLane?