Aukera Jewellery, a startup that makes lab-grown diamond (LGD) jewellery, is in talks to raise $15 million in series B funding in a round led by Peak XV Partners, sources in the know told Moneycontrol.
The fresh capital will help the company scale its operations amid increasing competitive intensity in the India’s $2.6 billion LGD market. Existing backers, including Fireside Ventures, are expected to participate in the round.
Lab-grown diamonds, also called synthetic diamonds, are produced in controlled environments using advanced technology that mimics the natural diamond formation process. As the cost of natural diamonds continues to rise, lab-grown alternatives are gaining traction, particularly among budget-conscious consumers.
Aukera did not respond to Moneycontrol’s queries.
Founded in 2023 by Lisa Mukhedar and Kumar Saurabh, Aukera competes with brands such as Limelight Lab Grown Diamonds, Fiona Diamonds, and Jewelbox. Larger jewellery players like Aditya Birla-backed GIVA also offer their own lines of lab-grown diamond jewellery.
The company was last valued at $14.7 million after it raised roughly $3.9 million in series A funding from Fireside Ventures early last year. The company’s investors also include Alteria Capital and Sparrow Capital.
Aukera’s fundraising plans come at a time when India’s nascent LGD market is growing rapidly. The market value of lab-grown diamonds in India was estimated at $2.61 billion in 2023 and is expected to reach $8.31 billion by 2032, growing at a CAGR of 13.73 percent, according to management consulting firm Technopak.
Despite many legacy jewellers operating in the space, there is currently no clear leader in this market. As such, over the last few years, several startups have come to occupy this space, and have garnered notable investor interest.
Last month, Limelight raised $11 million (roughly Rs 90 crore) in fresh funding at a $40 (Rs 340 crore) million valuation to expand the company’s retail presence and fend off competition.
This came months after GIVA raised Rs 255 crore as part of an extended series B round at a Rs 2,170 crore valuation. The company has, to date, raised over $63 million in funding across 11 rounds, as per data from market intelligence platform Tracxn.
While startups operating in the space have managed to raise funding, serial entrepreneurs are also launching their own LGD brands.
Last month, Good Glamm Group founder and former Venture Partner at Kalaari Capital, Priyanka Gill, launched COLUXE, offering jewellery such as solitaire rings, pendants, earrings, and necklaces. The firm picked up an undisclosed amount of angel funding to kickstart operations.
Meanwhile, larger players have also been on an expansion spree to increase market share. Tata Group’s Trent recently launched its own LGD brand Pome, while Senco Gold and Diamonds is reportedly in advanced talks to acquire direct-to-consumer (D2C) LDG brand Melorra.
Regardless, the LGD market in India is still nascent and makes up a small part of the overall jewellery market.
As per Tracxn, there are currently 2,836 internet-first jewellery startups in India, out of which as many as 262 are funded. These include brands such as GIVA, Ultrahuman, Oura, CaratLane, and Bluestone, among others. Just 79 of these startups have raised series A funding rounds so far.
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