BlueStone Jewellery IPO 2025: A Comprehensive Guide for Investors

Once known for making diamond shopping as easy as ordering pizza, BlueStone Jewellery and Lifestyle Ltd is now gearing up for its stock market debut. With over a decade of digital-first innovation, design-led collections, and a growing offline footprint, the company is tapping into India’s increasing love for branded jewellery, this time by going public.

Its upcoming IPO marks a new milestone in BlueStone’s journey from a Bengaluru-based startup to one of India’s most recognised names in omni-channel jewellery retailing. So what’s behind the glimmer of BlueStone Jewellery and Lifestyle Ltd IPO? What does the company plan to do with the funds? And what should investors know?

Before we understand BlueStone’s strategy, it’s important to see the bigger picture, the industry it operates in.

India’s Jewellery Market: From Legacy to Lifestyle

India’s deep-rooted connection with jewellery goes back centuries, where ornaments were not just adornments but cultural, spiritual, and economic assets. But the retail transformation of this industry began only in the early 1990s.

Back then, family-run jewellers ruled the landscape. Trust was personal, pricing lacked transparency, and purity checks were largely inaccessible to the average consumer.

Over the past three decades, however, the market has undergone a remarkable shift, from unorganised, traditional setups to a vibrant, design-forward, and digitally enabled industry.

Today, India is the second-largest jewellery market globally, having overtaken the US in 2024. The industry stood at approximately ₹6,340 billion (USD 75 billion) and has grown at a 13–15% CAGR since 2021. At this pace, it’s expected to nearly double to ₹11,000–₹12,000 billion by 2029.

Fueling this growth is a clear consumer shift towards organised and branded retail, which currently makes up 37% of the market and is projected to rise to 43–47% by 2029. Digital-first brands are playing a pivotal role in driving this transition.

But what exactly is powering this boom?

Branded jewellery players like Tanishq, BlueStone, and CaratLane are outpacing the broader market, growing at a 21% CAGR (2021–2024) and are expected to cross ₹5,000 billion by 2029.

This acceleration is rooted in rising incomes, a preference for lightweight and design-led jewellery, and growing trust in certified, standardised shopping experiences, especially those delivered across both online and offline touchpoints.

To understand the real depth of this market shift, let’s look at how the demand is segmented across use cases, materials, and regions.

In 2024, wedding-wear still holds the lion’s share at 53%, but it’s daily-wear jewellery that’s growing the fastest at nearly 17% CAGR, now comprising 36% of the market. Meanwhile, gifting jewellery, though a smaller segment at 11%, is highly design-centric and curated for special occasions.

Gold continues to dominate with an 81% market share, but its lead is slowly eroding. Diamonds (16%) and studded jewellery (15–25%) are gaining ground, not just in popularity but also because of their higher margins and aspirational appeal.

Regionally, South India leads in sales value, thanks to its long-standing cultural affinity with gold. However, North and West India show a higher frequency of purchases, hinting at a more occasion-driven buying behaviour.

And while metros still command visibility, it’s the Tier 3+ cities that are the real growth engine; they now contribute 30–40% of studded jewellery demand, growing at 14–16% CAGR.

But perhaps the most defining shift in this industry is the rise of organised, omnichannel retail. Brands that offer consistency, convenience, and credibility across both digital and physical touchpoints are rapidly gaining market share. In fact, omnichannel shoppers today spend twice as much as single-channel buyers.

With online jewellery penetration still at just 5–7% in 2024, the runway for digital growth is immense.

In this rapidly evolving landscape, brands that can combine the credibility of traditional jewellers with the convenience of modern retail are the ones positioned to win big. 

Among them, BlueStone has carved a distinctive niche, a brand born online, scaling offline, and now entering the stock market arena.

BlueStone Jewellery: A Digital-First Disruptor with Omnichannel Depth

At the heart of BlueStone’s business model is a direct-to-consumer (DTC) approach, combining a tech-enabled online platform with an expansive offline footprint. 

Its core value lies in offering accessibility, transparency, and convenience in a category long dominated by opaque pricing and traditional buying behaviours. 

The company’s portfolio spans diamond, gold, platinum, and studded jewellery across rings, earrings, necklaces, bangles, solitaires, and more. By FY25, it had launched over 7,400 unique designs across 91 collections, serving diverse needs, from everyday wear to milestone celebrations. 

Its emphasis on modern, lightweight, and design-forward jewellery is especially aligned with India’s fast-urbanising and youthful consumer base.

Affordability is balanced with aspiration in its pricing. BlueStone offers pieces starting under ₹5,000 and scaling up to ₹1.7 million+, making fine jewellery accessible to both first-time and high-value buyers. The Average Order Value (AOV) has steadily increased, reflecting rising trust and customer engagement:

• ₹32,038 in FY23
• ₹41,205 in FY24
• ₹47,671 in FY25

Importantly, complete transparency on weight, purity, and making charges is a cornerstone of its customer experience, building trust in a category where these details were once hidden or negotiable.

True to its digital-first DNA, BlueStone offers a seamless omnichannel journey. Its website and mobile app integrate features like 360-degree imagery, virtual try-ons, and video consultations, while physical stores offer the touch-and-feel assurance customers often seek before making significant purchases. 

Many in-store conversions begin with digital discovery a synergy that reinforces brand familiarity across channels. In FY25 alone, its online platforms saw nearly 299 million unique sessions, underlining the scale of its digital reach.

Meanwhile, the 275-store retail network includes 200 company-owned showrooms and 75 franchisee-operated ones, occupying a total of 605,000+ sq. ft. of retail space with an average store size of ~2,200 sq. ft. New store locations are chosen using digital insights—such as high online traffic from underserved PIN codes, ensuring physical expansion is backed by data.

Design innovation at BlueStone is driven by both creativity and customer behaviour. 

The company leverages search data and browsing patterns to guide new launches, enabling it to stay relevant in a trend-sensitive category. 

Use of 3D printing and CNC machining further accelerates speed-to-market, while allowing more intricate designs and better finishing.

The company’s revenue model is powered primarily by jewellery sales, with a strong tilt toward the studded segment, which made up 67.88% of operating revenue in FY25, a strategic choice that also supports healthier margins compared to plain gold. 

Beyond product sales, BlueStone has built meaningful ancillary revenue through loyalty and gold upgrade programs such as:

• Gold Mine Scheme: A 10+1 monthly savings plan
• The Big Gold Upgrade: A value exchange model for customers trading old gold for higher-purity or higher-carat jewellery

These programs drive repeat purchases, improve working capital cycles, and help unlock household gold, a largely underutilised asset class in India.

BlueStone’s growth has been sharply upward. From one store in 2018 to 275 in 2025, its expansion has been both aggressive and strategic. 

And the journey is far from over, 290+ new stores are planned by FY27, with a growing focus on Tier II and Tier III cities, especially in high-growth regions like Maharashtra, Delhi-NCR, and Uttar Pradesh. 

The company is also leaning more toward company-owned outlets, a move that enhances operational control and long-term brand equity.

Its target audience is clearly defined: millennials and Gen Z consumers between the ages of 25–45, who value both style and substance. 

These digitally savvy customers often discover BlueStone through online searches, social media, or influencer content. 

The brand positions itself as a “lifecycle jeweller,” offering options for every stage, be it self-gifting, festive shopping, engagements, or anniversaries, thereby increasing the share of wallet over time.

Geographically, BlueStone is a true pan-India brand, with presence across 12,600+ PIN codes. Regionally:

• South India contributes ~41% of total sales (led by gold-heavy wedding jewellery)
• West India accounts for ~22%, North for ~21%, and East for ~13%
• While the South leads in value, the North and West lead in frequency, and the East is emerging with high purchase recency
• Importantly, Tier 3+ cities contribute 30–40% of studded jewellery demand, and are growing at 14–16% CAGR, reinforcing BlueStone’s rural and semi-urban opportunity

With its clear positioning, omnichannel infrastructure, design-led product strategy, and tech-first mindset, BlueStone is uniquely placed to capture the next wave of growth in India’s jewellery retail evolution.

Having built a strong foundation of trust, reach, and product innovation, BlueStone is now looking to its next growth chapter, through public capital.

Understanding the BlueStone Jewellery IPO: Key Details

BlueStone Jewellery and Lifestyle Limited is stepping into the public markets with its much-anticipated Initial Public Offering (IPO), a key milestone in its journey from a digital-first jewellery startup to a fast-scaling omnichannel brand.

The company aims to raise funds through a combination of Fresh Issue and Offer for Sale (OFS):

• Fresh Issue: Up to ₹820 crore worth of new shares will be issued. These proceeds will go to BlueStone to support its business.
• Offer for Sale (OFS): 1.39 crore shares will be sold by existing investors like Accel, Saama Capital, Kalaari Capital, Iron Pillar, and Hero Enterprise. In OFS, the money goes to the selling shareholders, not the company.

The BlueStone IPO is structured to ensure broad participation across investor categories:

• 75% is reserved for Qualified Institutional Buyers (QIBs) – large financial institutions like mutual funds, banks, and insurance companies, who typically bring long-term capital.
• 15% is set aside for Non-Institutional Investors (NIIs) – high-net-worth individuals (HNIs) who invest more than ₹2 lakh in an IPO.
• 10% is allocated to Retail Individual Investors (RIIs) – everyday investors who apply for up to ₹2 lakh.

All investors, except Anchor Investors (who are allotted shares before the IPO opens), will need to apply using the ASBA process, where the application amount remains blocked in your bank account until share allotment.

Use of Proceeds from the Fresh Issue

BlueStone intends to utilise the net proceeds from the Fresh Issue primarily for working capital requirements, with ₹7,500 million allocated to support day-to-day operations, inventory expansion, and continued retail and manufacturing scale-up. 

This is crucial for sustaining its omnichannel growth, especially given the high operating cycles involved in jewellery retail.

A portion of the proceeds will also be used for general corporate purposes, which may include brand building, system upgrades, or strategic initiatives. 

However, this component will not exceed 25% of the total gross proceeds from the Fresh Issue.

It’s important to note that these fund allocations have not been appraised by any independent financial institution. 

Until the funds are deployed for their intended use, they will be held in scheduled commercial banks. 

BlueStone has also committed to full transparency, tracking and disclosing fund utilisation in its financial statements, with quarterly disclosures and updates for any deviations.

This IPO reflects BlueStone’s transition from a digital disruptor to a scaled omnichannel brand, now seeking long-term capital to power its next phase of expansion and deepen market leadership.

With the infusion of fresh capital, BlueStone plans to expand aggressively into Tier II & III cities while deepening omnichannel integration. 

However, sustained profitability, inventory turnover, and gold price volatility will remain key variables influencing its post-listing performance.

So, before diving into oheer key details, it’s essential to understand the financial journey behind BlueStone’s growth story.

BlueStone’s Financial Performance: Navigating Growth Amid Rising Costs

The company has consistently reported losses over the past three fiscal years (FY23–FY25), primarily due to its aggressive expansion strategy.

Let’s look at the numbers to see the whole thing more clearly: 

The company sustained a growth phase, prioritising expansion over profitability. Losses have persisted, largely due to heavy investments in retail networks, marketing, and working capital.

Despite this, revenue has surged by more than 100% over the last two years, driven by store additions, higher inventory, and stronger same-store sales. 

Gross margins have improved by nearly 20% during the period, supported by in-house manufacturing and a focus on diamond jewellery. 

A one-time accounting reclassification of preference shares also influenced past loss figures.

While the financials show BlueStone is still in its investment-heavy phase, they also reveal the foundations it has built for future growth. 

These foundations come through more clearly when we look at the company’s strategic advantages.

Key Strengths of BlueStone Jewellery 

• Strong Digital-First & Omni-Channel Presence: BlueStone is India’s second-largest digital-first jewellery brand, blending online ease with offline trust. With over 275 stores in 117 cities, its seamless web, app, and in-store experience keep customers engaged across every touchpoint.
• In-House Tech Backbone: A fully home-grown tech platform runs everything, from design rendering to manufacturing and sales, making operations faster, smoother, and more personalised for each customer.
• Design-Led Product Strategy: With 7,400+ designs and 91 collections, BlueStone stays ahead of trends, especially in studded jewellery, which boosts margins and brand appeal.
• Vertically Integrated Manufacturing: Facilities in Mumbai, Jaipur, and Surat give the brand full control over production, quality, and costs, with Mumbai running at over 98% capacity in FY25.
• Pan-India Reach with Growing Store Economics: Revenue per store has nearly doubled in two years, thanks to strategic store expansions, higher sales per location, and a balance between online reach and in-person service.

But no business story is without its challenges. Even with these strengths, BlueStone operates in a competitive, price-sensitive, and fast-changing industry factors that bring their own set of risks investors should weigh carefully.

Potential Risks and Challenges

• Consistent Losses and Cash Flow Strain – BlueStone has never posted a profit, with continued operating losses and negative cash flows, which could impact its ability to fund growth and sustain operations.
  
• Heavy Reliance on Repeat Buyers and AOV – A large share of sales comes from repeat customers, and maintaining high average order values is critical. Any slip here could hurt revenues and margins.
• High Inventory and Capital Requirements – Significant inventory investments tie up capital. Poor demand forecasting or slower sales could lead to overstock, higher financing costs, and reduced profitability.
• Exposure to Gold and Diamond Price Volatility – Sudden fluctuations in raw material prices can squeeze margins if costs rise faster than selling prices or make inventory harder to liquidate during price drops.
• Intense Competition and Market Disruption – The Indian jewellery market is highly competitive, with established players and new entrants, including lab-grown diamond sellers, challenging BlueStone’s market share and pricing power.
• Operational and Technology Risks – Dependence on digital platforms makes the business vulnerable to cyberattacks, data breaches, or tech disruptions that could impair sales and damage customer trust.
• External Uncertainties and Regulatory Shifts – Political instability, economic downturns, inflation, or unfavourable changes in laws could directly impact customer spending and increase operational or compliance costs.

Understanding these risks is just as important as recognising the opportunities. With both sides of the picture in mind, we can now assess what the BlueStone IPO might mean for investors.

Conclusion

From its humble beginnings to becoming India’s second-largest digital-first jewellery brand, BlueStone’s journey has been a blend of vision, craftsmanship, and innovation. It has transformed how India experiences jewellery, merging the trust of tradition with the ease of technology, and the sparkle of fine design with the reach of omnichannel retail.

But as with every shining gem, there are facets investors must examine closely. BlueStone’s path ahead will depend on its ability to achieve profitability, manage market competition, adapt to shifting consumer preferences, and navigate economic fluctuations. 

These factors can shape both its growth potential and the risks involved. For investors, it’s important to reflect on their own risk appetite and investment objectives before making any decision. In a market where jewellery carries both emotional and financial value, BlueStone’s story continues to unfold, offering a glimpse into a brand that seeks to blend aspiration, artistry, and scale in the years ahead.