Mumbai: Ratan Tata-backed BlueStone.com will invest Rs. 40 crore on marketing over the next 12 months as it looks to expand in the nascent-yet burgeoning online jewellery market in India.
The company, which introduced new facilities like home trials and chat options for prospective buyers, said it is on track to quadruple revenue to Rs. 1,000 crore by 2018.
"We are seeing a strong growth momentum as there is a clear shift in consumer mindset. The purchase is now towards more trendy jewellery and we are focused on introducing new designs and collections for our customers," BlueStone.Com chief operating officer Arvind Singhal told PTI.
He further said the average cart size ranges between Rs. 25,000 and Rs. 40,000 and has less than 5 per cent return rate.
"Over the next 12 months, we will invest Rs. 40 crore towards marketing. Investments are being made on educating customers about online jewellery buying as this segment is still in its nascent stages," he added.
Asked about the timeline for hitting profits, Mr Singhal said the company expects to become EBIDTA positive in the next 2-2.5 years.
BlueStone, which raised Rs. 100 crore funding last July, has investors like Accel Partners, IVY Capital, Dragoneer, Kalaari Capital and Saama Capital along with Tata Sons chairman emeritus Mr Tata, who invested in his personal capacity.
The company has a facility in Mumbai where it manufactures based on orders. Once, a customer places an order for a particular design, it takes about three days to manufacture and up to five working days to deliver the product.
"We are aggressively expanding our offering and channels of reaching customers. Our home trials have seen significant growth. These result in 65 per cent conversions and the ticket sizes are about 30 per cent higher," Mr Singhal said.
The facility is available in about 16 cities including Lucknow and Chandigarh. He further said the company will strengthen service in these cities before expanding to other locations.
BlueStone.com, which also gets orders from countries like the US, the UK, Australia and Canada, sees continued growth in international business in the coming years.
"Right now, its about 5 per cent of our revenue. When we hit the Rs. 1,000 crore revenue mark, we expect it to be about 5-8 per cent of the sales," Mr Singhal said.
According to reports, the fine jewellery market in India is pegged at about $60 billion, of which online market accounts for a minimal portion.