India's lab-grown diamond market shines brighter with investor backing

Rising funding, rapid store expansion and Titan's entry are pushing lab-grown diamonds from niche to mainstream, as Indian consumers embrace affordable, sustainable fine jewellery

India’s lab-grown diamond market is entering a high-growth phase as demand accelerates and funding surges amid the expansion. 

Once niche, lab-grown diamonds are edging into mainstream retail — now further catalysed by the entry of Titan, the largest jewellery retailer of the country. Players in the category are also enthused as it will help drive growth. 

“Titan’s entry through beYon is positive for the category. It will accelerate consumer awareness, validate lab-grown diamonds at scale, and ultimately benefit all serious players,” said Prajay Maganlal, chief executive officer (CEO), Elevè Lab Diamonds. 

Tata-owned brand Titan has entered the lab-grown diamond market with ‘beYon’, opening its first exclusive store in Mumbai on December 29. The format will be scaled to Delhi next, functioning independently from its existing jewellery brands Tanishq, Mia and Zoya. 

In June, one of the largest funding in the space came from GIVA, operating Heer — a lab-grown diamond brand, raised ₹530 crore in its Series C round. It was led by growth-stage investor Creaegis with participation from Premji Invest, Edelweiss Discovery Fund and others. The company looks to deploy the capital towards omnichannel expansion, retail footprint, and scale its lab-grown diamond jewellery portfolio, said Ishendra Agarwal, founder of GIVA.  

Bengaluru-based GIVA currently operates 280 stores, and plans to touch over 340 outlets by March 2026, with nearly 45 per cent new additions coming in FY26. Over the next three years, the brand intends to expand to about 800-1,000 stores pan-Indian, across Tier-I, -II and -III cities. A new manufacturing facility in Jaipur is also underway to deepen supply chain control and support higher volumes. 

Agarwal believes that lab-grown diamonds could drive a behavioural shift in Indian jewellery consumption, from investment-led purchases to everyday fine jewellery. 

Hyderabad-based Elevé Lab Diamonds has raised ₹14 crore so far and is in talks for another ₹10 crore to fuel retail and tech-led expansion. With a South India-first strategy, it plans new stores in Secunderabad and Coimbatore by Q1 of 2026, targeting over six outlets by March. Maganlal said that it aims to build a ₹500-crore brand in three years. 

Early-stage player Solitario, which raised $2 million (₹17 crore), plans to raise another $10-15 million (about ₹125 crore) next year to fuel global expansion. 

The brand aims for 100 touch points in 100 days, presence in 10 global markets by Q2 of 2026, 40 per cent annual growth and over 40 new stores. It expects lab-grown diamonds to cross 30 per cent global share at 14 per cent compound annual growth rate (CAGR). 

According to a RedSeer Consulting report in April, the lab-grown diamond market is rapidly gaining ground over their natural counterparts. 

The lab-grown diamond market is expected to make up 16 per cent of the global diamond market by 2029 from 12 per cent in 2024 and 9 per cent in 2019. 

Réia Diamonds founder and CEO Prapanjj S K Kota is preparing for the brand's next funding cycle of $1-4 million (about ₹8-33 crore) to expand physical retail via flagship stores and engagement ring studios. The brand aims to have 12 stores by FY27, with the funding supporting a sustainable, unit-economics-driven expansion. 

Meanwhile, Limelight Lab Grown Diamonds has raised ₹250 crore while entering in-house diamond growing and manufacturing. The vertically-integrated company targets 200 stores by 2027, signalling one of the most aggressive expansion roadmaps in the segment. 

Executives across brands say lab-grown diamonds are seeing early majority acceptance in urban markets.

With prices 30-60 per cent lower than mined diamonds, identical certification, sustainability narratives, and access to larger stones are compelling younger buyers. “Millennials and GenZ seek conscious, affordable luxury,” said Ricky Vasandani, CEO and cofounder, Solitario.  

According to Namita Kothari, founder of Akoirah by Augmont, consumer behaviour is shifting to design-led, value-oriented buying instead of investment purchases. Backed by ₹100-crore funding from Augmont, the brand eyes 100 stores in 24-36 months. 

For 2026, Akoirah targets 25 new stores, higher repeat purchase metrics, and deeper digital penetration.

Paresh Parekh, partner and national leader of tax- consumer products and retail sector, EY India reviews the shift as structural rather than cyclical. “Lab-grown diamonds are a fast-growing, disruptive segment, attracting younger, value-sensitive buyers”. He further added that large retailers’ entry is accelerating acceptance. 

PwC highlighted that India’s lab-grown diamond adoption has historically lagged global markets, but the shift is accelerating. Kushal Sinha, partner, retail and ecommerce at PwC Strategy, noted that India’s uptake was slow compared to the US and China, where lab-grown diamonds have already captured sizable share. “A year ago, US adoption had already crossed 60 per cent, China was in the 10-13 per cent range, while India was below 5 per cent.” 

The turning point, Sinha believes, is the sharp rise in gold and silver prices. “Daily wear jewellery has become significantly more expensive, making lab-grown diamonds a strong value proposition. Acceptance is opening up fast, especially as prices of precious metals remain high. Over the long term there was a real risk to both studded jewellery revenue and profit margins, especially with gold prices rising and pushing consumers towards alternative options.” 

On Titan’s entry, Sinha said the move was anticipated. “Tanishq waited and watched. Now, launching a separate lab-grown diamond brand from its other retail segments is the right step. It will expand acceptance not only among consumers but also the supply chain.” 

Shining bright

 

• Titan’s entry through ‘beyOn’ a pivotal moment for lab-grown diamonds market
• Expected to accelerate consumer awareness and validate lab-grown diamonds at scale
• Other players believe Titan’s foray will help drive growth
• In June, one of the largest funding in the space came from GIVA, which raised ₹530 cr in its Series C round