Journey of Jewellery Startup BlueStone: From Challenges to Success

If you’re a fan of stylish, everyday jewellery, chances are you’ve come across jewellery startup BlueStone. Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, this digital-first jewellery company has seen its share of ups and downs. But it’s not just a story of survival; it’s a story of resilience and reinvention.

So, let’s hop into the remarkable journey of BlueStone and how it has transformed the fine jewellery shopping experience in India!

The Sparkling Beginnings of BlueStone

When BlueStone started, it was one of the pioneers of online jewellery shopping in India. While traditional jewellers focused on heavy, occasion-specific jewellery, BlueStone targeted a niche- trendy, customizable, and lightweight pieces perfect for daily wear.  

For customers like you who value both aesthetics and convenience, BlueStone became a game-changer. 

From earrings you could wear to work to pendants that fit your casual wardrobe, the brand built a reputation for offering high-quality designs that stood out from the crowd.  

By offering lightweight designs, high levels of customization, and an attractive online interface, BlueStone quickly captured attention. Their offerings—simple yet stylish office wear and chic casual jewellery—stood out. 

Customers appreciated the convenience of browsing online and the option to personalize jewellery to their liking.  

However, while the jewellery startup BlueStone gained a loyal online following, the founders realized they were only scratching the surface of India’s vast jewellery market.

The Shift to Omnichannel

Despite the convenience of online shopping, buying jewellery often involves a personal touch. BlueStone realized this early on. After surveying customers, the company identified a significant demand for physical stores where people could see, touch, and try jewellery before making a purchase.  

In 2018, BlueStone took a bold step and opened its first physical store in Delhi. But it wasn’t just about adding stores—it was about creating an omnichannel experience. This means you could browse designs online, shortlist your favorites, and then visit a store to finalize your purchase.

As founder Gaurav Singh Kushwaha puts it, “Our data led us to believe that we were neither fully online nor offline. We had to go the omnichannel route.”  

COVID-19 Pandemic: A Rough Patch

BlueStone’s offline expansion was in full swing when the COVID-19 pandemic hit. Stores shut down, customers stayed home, and sales plummeted. For a time, it looked like the jewellery startup BlueStone might not survive.  

In FY21, the company reported a loss of Rs.31.5 crore, which ballooned to Rs.1,268.4 crore the following year. Revenue from operations dropped from Rs.255 crore in FY20 to Rs.244.6 crore in FY22. 

This period proved to be a double-edged sword for BlueStone. On one hand, the digital-first nature of the company helped sustain online sales. On the other, the significant investments in offline stores strained its finances. Investors became wary and hesitant to pump in more funds without a clear recovery plan.

Financial Performance of BlueStone

Here’s a snapshot of BlueStone’s financial struggle during that time-

While losses persist, they are narrowing steadily, and revenues are climbing at an impressive pace. The jewellery startup BlueStone is now gearing up for a $250 million IPO in 2024, signaling confidence in its growth strategy. 

The Turnaround: Finding New Ground

But as the saying goes, tough times don’t last, tough people do. BlueStone adapted quickly, refining its omnichannel model and leveraging its online strengths. Once lockdowns eased, footfalls began to rise, especially in tier-2 and tier-3 cities.  

Today, BlueStone boasts over 200 stores across 80 cities, and the bulk of its demand comes from smaller towns where organized retail is growing rapidly. The company’s offering—lightweight, stylish jewellery for daily wear—has struck a chord with younger, fashion-conscious customers like you.  

In FY24, BlueStone reported a remarkable revenue jump to Rs.1,265.8 crore, narrowing its losses to Rs.142.2 crore. This turnaround wasn’t just a financial victory but also a testament to the founders’ resilience. 

Why BlueStone Stands Out?

So, what makes BlueStone a brand worth watching? Here are some key highlights-

1. Customization at its best: BlueStone offers highly customizable designs. Whether it’s resizing, stone selection, or engraving, the brand allows you to make each piece uniquely yours.
2. Convenience like Never Before: BlueStone’s “Try at Home” feature lets you shortlist designs online and have them delivered to your doorstep for a trial. This makes jewellery shopping hassle-free and safe.  
3. Everyday Elegance: Unlike traditional jewellers focusing on wedding or festive jewellery, BlueStone caters to your daily wear needs. Think minimalist rings, elegant pendants, and chic bracelets that can be worn anywhere.  
4. Strong Digital Presence: With a user-friendly website and social media engagement, BlueStone knows how to connect with you online while providing the option to visit a physical store.  
5. Quality You Can Trust: BlueStone ensures that every piece meets the highest standards of craftsmanship. From BIS Hallmarked gold to certified diamonds, you get what you pay for. 

Lessons from BlueStone’s Journey

BlueStone’s journey from an online pioneer to an omnichannel player offers several takeaways-

• Timing Matters: The shift to physical stores was essential but came at a challenging time, making survival tougher during the pandemic.  
• Adaptability is Key: The jewellery startup BlueStone adapted to changing consumer behaviors, proving that resilience can help overcome even the toughest crises. 
• Customer Experience is Everything: By focusing on convenience, customization, and trust-building, BlueStone carved out a unique niche in the highly competitive jewellery market.  

The Bigger Picture

India’s jewellery market is massive—estimated at $80 billion in FY24, with organized players like BlueStone accounting for 36-38% of the share. By FY28, this market is expected to grow to $145 billion, fueled by rising disposable incomes and a shift towards organized retail.  

For a company like BlueStone, this represents a golden opportunity. Its omnichannel model is perfectly aligned with evolving consumer preferences. According to industry experts, customers who browse online before visiting stores are more likely to convert, making the combination of online and offline sales channels a winning strategy.  

Note: We have covered various topics on BlueStone. Go through the following articles for detailed information-

• BlueStone Business Model: How BlueStone makes money?
• BlueStone Funding, Valuation, and Shareholders Breakdown
• CaratLane vs BlueStone: Who is leading the jewellery market?

The Road Ahead

With its turnaround in full swing, BlueStone is now gearing up for a $250 million public offering in 2024. This IPO will mark a new chapter in its journey and help strengthen its position in the $80 billion Indian jewellery market, which is expected to grow to $145 billion by FY28.

As it prepares for its IPO, BlueStone aims to cement its position as a leader in the organized jewellery market. Whether you’re shopping for a dainty necklace or a bold ring, BlueStone promises an experience that’s as memorable as the jewellery itself.  

Final Thoughts

The journey of the jewellery startup BlueStone is a testament to innovation, adaptability, and perseverance. By understanding its customers and staying ahead of trends, it has transformed from an online-only venture into a major player in India’s jewellery market.  

So, the next time you’re looking for jewellery that matches your style and personality, why not give BlueStone a try? After all, it’s not just about owning jewellery—it’s about celebrating your everyday moments in style!