India’s Lab-Grown Diamond Startups Strive for Market Growth

More Indians are choosing lab-grown diamonds, pushing homegrown startups to expand quickly and tap into the growing demand for affordable, sustainable jewellery, as per the latest reports. The domestic market, while still in its early stages, has seen an increase in the number of startups attempting to build a national presence. 

According to market reports, India currently has 37 lab-grown diamond startups, the highest number globally.

No Dominant Player Yet

Despite the presence of established jewellers in the space, no single company has emerged as a market leader. This has created opportunities for newer entrants to scale operations and build brand identity. Startups are increasing their retail footprint to meet growing demand and compete for visibility in Tier 1 cities.

Jewelbox Expands Retail Network

Kolkata-based Jewelbox operates eight stores across 6 cities, including Delhi, Chennai, and Bengaluru. The brand has announced plans to open 25 more outlets by the end of the financial year. Around 40% of its orders currently come from its online platform. The company was also featured on Shark Tank India and secured investment from judges associated with companies like boAt, Sugar Cosmetics, Lenskart, and Oyo.

Other Startups in the Sector

Other startups building a presence in this segment include Limelight, Fiona Diamonds, Wondr Diamonds, Titan Capital-backed Truecarat Diamonds, Aupulent Jewellery, and Alteria Capital-backed Aukera Jewellery. Traditional players are also entering the space. Augmont, a gold trading platform, recently invested ₹100 crore to launch its lab-grown diamond brand, Akoirah.

Pricing and Supply Chain 

Unlike natural diamonds, which are priced based on the Rapaport price list, lab-grown diamonds are priced according to production costs and retailer margins. Over the past year, prices have dropped by 25-30% due to oversupply and relatively low production costs. Margins across the supply chain have been reduced, making pricing more competitive.

Conclusion

Lab-grown diamond startups are scaling operations to meet rising demand, with no clear market leader yet. The focus remains on expanding retail presence and managing costs in a price-sensitive, fast-evolving category.

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