The Indian market is currently witnessing a massive influx of capital into the burgeoning lab-grown diamond, or LGD, sector. The wave of investment is fuelling a rapid expansion for fast-scaling brands and tapping into a rising tide of consumer acceptance across the nation. The momentum is undeniable, with the lab-grown diamond jewellery market now valued at a significant $300 million to $350 million as of 2024.
New-age brands are successfully completing multiple rounds of funding, capitalizing on the sector's robust growth and promising market share improvements. This strong financial backing is proving instrumental in their ability to scale operations quickly and effectively.
High-Profile Fundraising and Expansion Plans
Several companies in the LGD space have recently secured impressive rounds of funding. Among them is the jewellery brand Limelight, which has appointed Ambit Capital to raise approximately $20 million to fuel its own expansion plans. This strategic move is intended to support an aggressive retail growth strategy, including plans to launch 100 stores over the next year. Limelight’s co-founder, Pooja Madhavan, confirmed the fund's deployment would be directed toward store expansion, brand building, and talks are currently in progress with private equity firms and reputed family offices to secure the capital. Adding a layer of celebrity appeal to the brand, actress Shilpa Shetty-backed Limelight is also joining a second round of capital infusion for other small brands such as Onya, Giva, JewelBox, Lucira Jewellery, and Aukera.
Other brands have also seen significant financial boosts. Onya, for example, successfully secured approximately ₹5.5 crore in a pre-seed funding round led by Zeropearl VC. Aukera received an impressive $15 million in its lion round led by Peak XV Partners, while Aditya Birla Ventures-backed Giva raised ₹530 crore in an internal funding round led by Premji Invest, Epiq Capital, and Edelweiss Discovery Fund. This capital is earmarked to scale up its lab-grown diamond offerings and further solidify its market presence.
The Investor and Consumer Rush
The investment surge is a clear reflection of the market’s underlying health and projected growth. Nine pure-play lab-grown diamond startups collectively raised a remarkable 26.4 million this year, a substantial increase compared to the 4.7 million raised by eight startups last year, according to data from market intelligence provider Tracxn.
The development of India’s lab-grown diamond jewellery market is spectacular. Valued at $300 million to $350 million in 2024, the market is poised to grow at a Compound Annual Growth Rate, or CAGR, of 15% over the next decade, as per estimates from consultancy firm Redseer. The broader market sentiment, according to Redseer's analysis, suggests that several prominent jewellery brands are increasingly favouring lab-grown diamonds in their collections. This strategic shift is expected to further boost sales volumes and establish LGDs as an accessible entry point for consumers into the diamond market.
Shifting Consumer Preferences and Market Dynamics
This segment’s growth has been particularly pronounced over the last five years, driven by a changing consumer base, namely millennials and Gen Z. These generations are gravitating toward LGDs due to their certification, high quality, and trendier designs. The appeal of lab-grown diamonds also extends beyond occasional fashion jewellery; they are increasingly being embraced for daily wear and wedding jewellery. This acceptance is rooted in the perceived comfort and willingness of consumers to treat lab-grown diamonds as a mainstream jewellery platform.
The rising competition is also evident among legacy brands. Leading Indian jewellery houses like Malabar Gold & Diamonds, Senco Gold, and Titan’s Tanishq and Zoya's parent company, Tata’s Trent, are actively considering or already incorporating LGDs into their portfolios. Senco Gold, for example, has successfully launched its brand Pome in Westside stores, indicating a strong move to capture the growing mid-ticket gifting and daily wear segment.
Devangshu Dutta, founder and chief executive officer at Delhi-based consulting firm Third Eyesight, noted that established new-age brands are consistently gaining market share in the mid-ticket gifting and daily wear segment by successfully pushing into premium ranges. While the competitive landscape is intensifying, legacy incumbents are already reacting to the growth of LGDs by launching their own lab-grown diamond lines. This adaptation ensures they remain relevant and competitive in an evolving market.
The rush of investors and the shift in consumer sentiment underscore a pivotal moment in India's jewellery market. Lab-grown diamonds are no longer a niche alternative, but a powerful, sparkling force reshaping the landscape of luxury and accessible fashion.
