What began as a niche category led by digital-first jewellery startups is rapidly evolving into one of the fastest-growing jewellery segments, drawing the attention of legacy brands, venture capital investors and large online marketplaces as lab-grown diamonds gain wider consumer acceptance.
The shift is visible across the value chain. Titan Company entered the segment with its lab-grown diamond brand BEYON in December 2025, Bluestone invested Rs 25 crore in startup Ethera and demi-fine jewellery brand Palmonas has announced plans to launch its own lab-grown diamond range. E-commerce platforms are also expanding their offerings as consumer demand broadens beyond early adopters.
Amazon India said its lab-grown diamond category has grown nine-fold since the start of the year. “While metros continue to drive strong demand, we are also seeing growing interest from tier-2 and 3 cities. Customers are increasingly choosing lab-grown diamonds not just for gifting, but also for everyday wear,” Siddharth Bhagat, director, Amazon Beauty, personal care and fashion accessories, told FE. The platform currently sells products from more than 20 brands, including GIVA, Sparkles, Lukson and KEEMTI.
VC Capital
The surge in demand is also drawing investor attention. According to Tracxn, seven lab-grown diamond startups have been launched this year, taking the total founded over the past three years to more than 37. Funding has accelerated sharply, with startups in the segment raising $125 million so far this year, compared with $78 million in 2025 and just $9 million in 2024. Recent deals include Limelight Diamonds raising Rs 275 crore in a strategic funding round led by the Bhathwari Group, Aukera securing Rs 90 crore in debt funding from Alteria Capital and Onya raising Rs 5.5 crore.
Investors believe the category is benefiting from a structural shift in consumer behaviour. “India is a price-sensitive market with a very large population that historically could not afford diamonds. Lab-grown diamonds change that equation by making the category significantly more accessible,” Aditya Singh, co-founder and partner at All In Capital, which has invested in Everyday Diamonds, said. “This will become a multi-billion-dollar category.”
For brands already operating in the space, consumer acceptance has moved well beyond experimentation. DiAi Designs said its order volumes and revenue have increased 30-fold since launching in 2018, with the company now targeting a six to seven-fold rise in revenue by 2028. Founder Disha Shah said customers are actively seeking lab-grown diamonds rather than treating them as an alternative to mined stones. The company now sees bridal jewellery as its biggest growth opportunity.
Favorable Economics Drive Adoption
The economics are helping accelerate adoption. Lab-grown diamonds typically cost 70-90% less than mined diamonds, making them increasingly attractive to value-conscious Gen Z and millennial buyers. According to Wazir Advisors, India’s lab-grown diamond market was valued at about Rs 3,452 crore in FY25 and is expected to grow to Rs 5,179 crore by FY28, compared with the overall diamond market size of Rs 53,512 crore.
However, as more established jewellers enter the segment, the next phase of competition is likely to shift from creating demand to winning customers. With certified stones becoming easier to source and products increasingly commoditised, companies may have to spend significantly more on branding, distribution and customer acquisition to build enduring businesses. “The opportunity is real, but the winners will need a very clear reason for consumers to choose them when the product, supply chain and price are all increasingly easy to replicate,” Singh said.