Aukera raises $15 million to expand lab-grown diamond jewellery brand

With $15 million from Peak XV and others, Aukera plans to grow its lab-grown diamond brand as India's $350 mn market sees 15 per cent annual growth

Lab-grown diamond jewellery maker Aukera has raised $15 million in growth funding to expand its retail footprint and product lineup, as the company bets on shifting consumer preferences in India’s traditional jewellery market.

 

The round was led by Peak XV Partners, with continued backing from existing investors including Fireside Ventures, Sparrow Capital, Prath Ventures, and Alteria Capital.

 

The funding comes as India’s lab-grown diamond jewellery market, while still nascent at an estimated $350 million in 2024, is projected to grow at around 15 per cent annually over the next decade, according to consultancy firm Redseer.

 

Founded two years ago, Aukera has scaled to 13 stores across India including Bengaluru, Delhi NCR, and Hyderabad. The company faces competition from established players like BlueStone and Melorra, as well as specialised lab-grown diamond retailers including Jewelbox, Fiona Diamonds, and Limelight Lab Grown Diamonds.

 

“Women in India are upgrading to lab-grown diamond jewellery and Aukera is proud to lead that shift,” said Lisa Mukhedkar, founder and CEO, Aukera. The company aims to become a ₹1,000 crore brand within five to seven years, though it did not disclose current revenue figures for comparison. 

 

With the fresh funding, Aukera plans to accelerate its physical retail expansion, invest in design and merchandising talent, and strengthen its omnichannel capabilities. The company’s strategy of maintaining direct control over retail operations contrasts with many competitors who rely heavily on online sales or franchise models.

 

“The investment from Peak XV Partners is significant as we pursue rapid expansion,” said Kumar Saurabh, co-founder, Aukera.

 

Lab-grown diamonds offer a significantly lower-cost alternative to mined diamonds while being chemically identical. However, in India, consumer acceptance is still evolving due to longstanding cultural preferences for natural diamonds, though this is gradually changing with increased awareness and demand for ethical, affordable jewellery, experts say.

 

“Driven by favourable market trends and a strong consumer shift, Aukera is well-positioned to lead India’s fast-growing lab-grown diamonds category,” said Abhishek Mohan, principal at Peak XV Partners.

 

Kanwaljit Singh, founder and managing partner at Fireside Ventures, said the investment positions Aukera to scale rapidly and set benchmarks for the category.