Temasek Holdings, a Singapore state investor, is reportedly exploring the possibility of investing $100 million in BlueStone, an Indian jewellery company, for a 20% stake. Sources with direct knowledge of the matter informed that the investment would value BlueStone at around $500 million. Currently, BlueStone has disclosed plans to open 300 stores by 2024, with over 150 stores currently in operation.

The Indian jewellery market is dominated by thousands of small and large independent stores, as well as branded outlets such as Tanishq and CaratLane, and Kalyan Jewellers. Unlike traditional jewellers, BlueStone and CaratLane provide online sales services.

Although Temasek's interest in investing in BlueStone has been previously reported, due diligence is currently being conducted by Temasek, with a potential deal expected to be reached between July and September if talks are successful.

The deal talks are taking place at a time when many Indian startups are struggling to raise funds, causing them to delay initial public offerings (IPOs) and lay off employees as investors question their high valuations. According to data firm CB Insights, startups raised just $2 billion in the first quarter of 2023, 75% lower than in the same period last year.