Lab-grown diamond jewellery startup Firefly Diamonds raises $3 million in funding led by WestBridge

Lab-grown diamond jewellery startup Firefly Diamonds raises $3 million in funding from WestBridge

Firefly Diamonds, a startup that makes lab-grown diamonds, has raised $3 million in a seed funding round led by WestBridge Capital.

The fresh capital will be used to expand the company’s retail presence and fuel research and development for new jewellery collections, the company said in a statement. Firefly currently has stores across four cities – Mumbai, Pune, Bengaluru, and Hyderabad, and plans to enter over 20 locations the next two years.

This comes at a time when competitive intensity in India’s $2.6 billion lab-grown diamond (LGD) market is on the rise. Several startups operating in this space have recently either raised capital or are close to raising funding from prominent investors.

Moneycontrol exclusively reported that LGD brand Aukera Jewellery is currently in talks to raise $15 million in series B funding in a round led by Peak XV Partners. Meanwhile, other competitors like Limelight Lab Grown Diamonds and GIVA have closed funding rounds over the past few months.

“Our brand is built on a legacy of trust, innovation, and craftsmanship. With over 60 years of expertise in jewellery manufacturing and design, we ensure that every piece reflects unparalleled quality and excellence… With this funding, we wish to usher in a new era of Indian luxury, that celebrates beauty, individuality, and the art of fine craftsmanship,” said Adit Bhansali, co-founder, Firefly Diamonds.

Founded in December 2023, Firefly offers lab-grown diamond jewellery set in 14K and 18K gold. The company also provides a host of customer initiatives such as Firefly Try at Home, the Firefly Sparkle Plan—an instalment-based savings plan for the perfect jewellery piece, an Old Gold Exchange program, and Firefly Reserve – an exclusive bespoke line of personalized high jewellery.

Firefly’s funding comes 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.

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.