Firm invests $140M in online jeweler

Online jeweler JamesAllen.com bagged its biggest rock yet — a $140 million investment.San Francisco private equity tech investor Francisco Partners did not disclose the size of its stake in the New York retailer.However, one report said the investor was...

Firm invests $140M in online jeweler

Online jeweler JamesAllen.com bagged its biggest rock yet — a $140 million investment.

San Francisco private equity tech investor Francisco Partners did not disclose the size of its stake in the New York retailer.

However, one report said the investor was getting a near 50 percent stake — valuing R2Net, the retailer’s parent, at roughly $300 million.

Founded in 2006, James Allen’s site features a technology that offers a highly magnified, 360-degree view of its gems and rings.

It claims to offer prices that are 30 to 50 percent less expensive than bricks-and-mortar retailers.

Its sales have tripled over the past couple of years, the privately held company said.

The average price of a James Allen ring is $6,000, it said.

“Everything we do is geared towards how we can bring the diamond and bridal industry to a more modern era,” said co-founder and Chief Operating Officer Dean Lederman, who declined to elaborate on how the funds will be used.

R2Net is a vertically integrated company that cuts, polishes and sells loose diamonds — in addition to diamond rings.

About 18 months ago, James Allen opened a showroom on Fifth Avenue at West 45th Street, just outside the Diamond District.

“We are thrilled to partner with the team at Francisco Partners to continue our journey of disrupting the diamond industry,” R2Net CEO Oded Edelman said in a statement.

“We have a shared vision that consumers deserve a better diamond buying experience, and we are demystifying the process,” the CEO said.

R2Net provides e-commerce services to Sears and has a cooperative venture with Signet, which owns the Kay, Zales, Jared and Piercing Pagoda chains, according to Globes, an Israeli business news site.

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