Temasek looking to invest $100 million in jeweller BlueStone: Report

Singapore investor Temasek Holdings is planning to invest $100 million in BlueStone and acquire a stake of about 20 per cent, news agency Reuters reported.

This investment would value Bengaluru-based BlueStone, also backed by venture capital firm Accel and industrialist Ratan Tata, at close to $500 million, Reuters quoted sources as saying.

The proposed transaction might bolster BlueStone's intentions to rapidly expand in India, the world's second-largest jewellery consumer after China, as demand spikes during the pandemic.

The jeweller has previously stated that it intends to add 300 outlets by 2024. According to its website, it presently has over 150 outlets.

BlueStone operates in a market that is dominated by thousands of small and large local independent jewellery stores, but also branded outlets like Titan Company-owned Tanishq and CaratLane, and Kalyan Jewellers.

Unlike many conventional jewellers, companies such as BlueStone and CaratLane sell online.

While Temasek's interest in Bluestone has previously been revealed, Reuters is the first to report on the investment amount, potential valuation, and other financial specifics of the potential deal.

Temasek is conducting due diligence on the sale and a deal may be reached as early as July-September if talks are successful, Reuters quoted sources as saying.

Temasek has been investing $1 billion annually in India over the past six years and its underlying exposure to India is $16 billion, which is over 5% of Temasek's global $297 billion portfolio, its India head Ravi Lambah told the Economic Times last month.

The deal talks also come at a time when many Indian startups have been struggling to raise fresh funds, forcing them to delay IPOs and sack employees as investors question their sky-high valuations. Startups raised just $2 billion in the first quarter of 2023, 75 per cent lower than the same period of last year, according to data firm CB Insights.

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