Lab-grown diamond jewellery brand Aukera has secured $15 million in a funding round led by Peak XV Partners. In addition, the round saw participation from existing investors, including Fireside Ventures, Sparrow Capital, Prath Ventures, and Alteria Capital.
The Bengaluru-based startup announced on June 30 that it will use the funds to strengthen its offline retail presence. Additionally, it plans to enhance its omnichannel capabilities and further invest in product innovation and brand-building efforts.
“Our biggest investments will go into scaling physical retail,” co-founder and CEO Lisa Mukhedkar told Moneycontrol. “Offline continues to be the strongest revenue driver but we’re also investing in technology and marketing, especially to educate consumers on the value and quality of lab-grown diamonds.”
Launched in August 2023, the company currently operates 13 stores across Bengaluru, Delhi-NCR, and Hyderabad. Looking ahead, it plans to open two additional outlets in Delhi and Bengaluru within the next two weeks.
Aukera generates an annualised revenue run rate of ₹200 crore and plans to scale it up to ₹1,000 crore over the next five to seven years.
“We’re building a long-term, legacy brand rooted in consumer insight,” she said. “Women have long been frustrated with the size, quality and price of mined diamonds. Aukera solves that. They’re now choosing grown diamonds not because they’re cheaper, but because they’re better.”
The funding round also marks Alteria Capital’s entry as an equity investor, building on its existing debt partnership with Aukera.
“Our focus now is to scale our footprint, elevate our brand, and push our omnichannel capabilities,” said co-founder Kumar Saurabh.
He said Aukera strategically partners to source high-grade lab-grown diamonds and manufactures its jewellery in India to meet global standards.
“It’s a highly India-centric supply chain now. From growing to finishing, India has become the hub for the best quality lab-grown diamonds,” Saurabh added.
Addressing concerns around pricing, he said lab-grown diamond prices have stabilised over the past year as production shifted to India and China.
“The sharp fall in prices globally was simply the result of manufacturing moving from expensive setups in the West to highly competitive ecosystems here,” he said.
“This narrative of crashing prices is often pushed by legacy miners but consumers are smart. They see through it.”
This development comes amid a surge of new entrants—both startups and established brands—into India’s lab-grown diamond market.
Despite the growing competition within the lab-grown segment, co-founder Mukhedkar noted that Aukera’s primary competition lies not with other startups, but with mined diamonds, which continue to dominate 95% of the Indian jewellery market.
“The seismic shift is already underway. We believe brands like us that are built ground-up for this category will emerge dominant, just as you’ve seen in the mined diamond space,” she said.
The founders said they’re in no rush to expand globally. “We’re eyeing a 500-store footprint here before looking overseas,” Mukhedkar added.
The industry is also gaining momentum due to policy tailwinds. In recent years, the government has reduced duties, invested in research on lab-grown diamond technology, and actively promoted the sector as part of its Make in India initiative.
“The Prime Minister gifting a grown diamond to a US head of state was a strong signal. The government sees this as a strategic and sustainable sector for India,” Mukhedkar said.
Aukera’s latest funding round clearly highlights the growing investor confidence in the lab-grown diamond segment. Amid evolving market dynamics, shifting consumer preferences and supportive government policies are driving this growing investor confidence. Backed by fresh capital and a strong focus on offline expansion, omnichannel growth, and product innovation, Aukera is actively positioning itself to scale rapidly and challenge traditional players in India’s jewellery market.
