Priyanka Tiwari
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As Indian consumers shift toward more affordable and sustainable alternatives to natural diamonds, lab-grown diamond (LGD) startups are gaining visibility and traction. With rising demand, increased funding, and an expanding customer base—especially among younger buyers—the sector is entering a high-growth phase.
Despite price fluctuations and intense competition, LGD companies are drawing significant investor attention, as stakeholders recognize the market’s long-term potential.
Investor Interest on the Rise
According to data from Tracxn, there are 77 active LGD startups in India, 13 of which are funded. These companies have raised $24.6 million in total, with $14 million raised in just the first three months of 2025—a 56% increase from 2024.
Notable deals this year include:
Limelight Diamonds raised $11 million in February 2025
Firefly Diamonds, backed by WestBridge Capital, secured $3 million in March 2025
Aukera Jewellery is reportedly closing a $15 million Series B round led by Peak XV Partners
Startups vs Traditional Jewelers
While established brands like Tata’s Trent (Pome) and Senco Gold enter the LGD space, startups claim an edge due to their agility and modern branding. Founders highlight that quick decision-making, innovative designs, and tech-driven operations allow them to better align with today's fast-evolving consumer preferences.
“Startups like ours can adapt quickly and design for modern buyers,” said Darayus Mehta, co-founder of True Diamond, which raised $1 million in seed funding last year.
Why Lab-Grown Diamonds Appeal to Millennials and Gen Z
Unlike natural diamonds, lab-grown diamonds are created using high-tech processes but are chemically and physically identical. They are:
More affordable
Sustainably produced
Visually indistinguishable from mined diamonds
“Lab-grown diamonds appeal to aspirational Indian consumers,” said Vidita Kochar Jain, co-founder of Jewelbox. “Younger buyers value sustainability and affordability over resale value.”
Serial Entrepreneurs Entering the Space
The sector's growth is also attracting seasoned entrepreneurs. Priyanka Gill, co-founder of the Good Glamm Group, recently launched COLUXE, a D2C LGD brand. The company is already backed by angel investors and is preparing for further fundraising.
Market Outlook: Opportunities and Risks
India’s lab-grown diamond market was valued at $2.61 billion in 2023 and is projected to grow to $8.31 billion by 2032, according to Technopak, with a CAGR of 13.73%.
However, challenges remain:
Price volatility: LGD prices have dropped significantly. A 1.5-carat lab-grown stone is now 85% cheaper than in 2015.
Margin pressures: Unregulated supply has compressed profit margins.
Scaling challenges: Expanding beyond metro cities and surpassing ₹50 crore in revenue remains a significant hurdle.
“The success of LGD startups will depend on how well they execute beyond initial funding,” noted an anonymous investor.
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