Temasek considers investing $100 million in jeweller BlueStone: Report

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Written by Chris Thomas and Yantoltra Ngoy

BENGALURU/SINGAPORE (Reuters) – Singapore state investor Temasek Holdings is considering investing $100 million in Indian jeweler Bluestone for a stake of about 20 percent, two sources familiar with the matter told Reuters.

One of the sources, who asked not to be identified, said the investment would value Bengaluru-based Blue Stone, which is also backed by venture capital firm Accel and Indian industrialist Ratan Tata, at nearly $500 million.

The potential deal could boost BlueStone’s plans to expand aggressively in India, the second-biggest consumer of jewelry after China, where demand is surging after the pandemic.

The jeweler had previously revealed plans to open 300 stores by 2024. He now has more than 150, according to his website.

BlueStone operates in a market dominated by thousands of small and large independent local jewelry stores, as well as branded outlets such as Titan-owned Tanishq and CaratLane, and Kalyan Jewellers.

Unlike many traditional jewelers, companies like BlueStone and CaratLane also offer online sales.

While Temasek was previously reported to be interested in investing in Bluestone, Reuters is the first to provide details of the investment amount, potential valuation and other financial details of the potential deal.

One source said Temasek is doing due diligence on the deal and a deal could be concluded as early as July to September if the talks are successful.

BlueStone CEO Gaurav Kushwaha did not immediately respond to a Reuters request for comment, while Temasek declined to comment.

Temasek has been investing $1 billion annually in India for the past six years, and its primary exposure to India is $16 billion, which is more than 5% of Temasek’s global portfolio of $297 billion, Indian company chief Ravi Lamba told The Economic Times last month.

Deal talks also come at a time when many Indian start-ups have been struggling to raise new cash, forcing them to delay IPOs and lay off employees as investors question their sky-high valuations. Startups raised just $2 billion in the first quarter of 2023, down 75% from the same period last year, according to data firm CB Insights.


 

(Reporting by Chris Thomas in Bengaluru and Yantultra Ngoi in Singapore; Editing by Kim Coghill)

(Only the title and image for this report may have been reworked by the Business Standard staff; the rest of the content is generated automatically from a shared feed.)