Bengaluru-based Jewelbox has nearly doubled its marketing budget in the last year and now incurs nearly 20% of its online expenditure on awareness campaigns, its co-founder Nipun Kochar said.
“About a fifth of our online digital spends goes towards awareness campaigns. There’s a mental block around lab-grown diamonds compared to mined diamonds, and brands need to put in resources to disseminate the right information,” Kochar added.
Jewelbox’s other co-founder—Vidita Kochar—routinely posts videos on Instagram and YouTube sharing information about how lab-grown diamonds are made, how different they are from regular stones, and how one can pick the right one.
The firm appeared on the third season of Shark Tank India and received commitments from five sharks, including Lenskart’s Peyush Bansal, boAt’s Aman Gupta, Sugar Cosmetics’s Vineeta Singh, Edelweiss Mutual Fund’s Radhika Gupta, and Oyo’s Ritesh Agarwal.
Svaraa, a bootstrapped startup based in Surat, has invested nearly ₹10 crore in similar campaigns and its parent company, Kalamandir Jewellers, since its inception in 2021. The firm plans to earmark another ₹20-30 crore in the next two years, its founder and chief executive Chahat Shah told Mint.
“Rising consumer awareness about the benefits of lab-grown diamonds and our targeted campaigns around engagement and solitaire jewellery have resonated well with the wedding and daily wear segments. The festive and bridal seasons have also significantly contributed to boosting sales, as more consumers are choosing lab-grown diamonds for their affordability, beauty, and ethical value,” Shah said.
Svaraa will continue to focus on educating consumers about the unique advantages of lab-grown diamonds, driving brand recognition, and establishing LGDs as a mainstream choice for both bridal and everyday fine jewellery, Shah said.
Embracing LGDs
Brands are already noting early signs of adoption. Jewelbox expects its FY26 revenue to more than double to ₹35 crore compared to the previous year, bolstered by demand from young and first-time diamond buyers, according to Kochar. Svaraa’s Shah said it has seen a 60% increase in inquiries and a 45% rise in sales in the last few months.
Lab-grown diamonds—whose physical and chemical composition are said to be the same as naturally mined diamonds—have become prominent in the last few months. With prices at least 30-50% lower than mined counterparts, these stones have become answers to the aspirations of many Indians who would otherwise struggle with low affordability.
“Because lab-grown diamonds replicate the physical properties of a mined diamond, it’s got the destructibility and the perfect shine. It has the potential to be a much more superior product as compared to the mined diamond in properties like clarity, colour, etc.,” Yash Dholakia, partner at early-stage venture capital firm Sauce.vc, said.
And consumers are also willing to buy. “I read a study which said that a decent portion of wedding rings in the US has moved to lab-grown diamonds. So, there does seem to be consumer acceptance for it,” Dholakia added.
Earlier this week, a report by Kotak Institutional Equities showed that women in India are likely to embrace a mix of natural and lab-grown diamonds into their jewellery collections, which could give lab-grown diamonds a much-needed boost. This will be driven by higher education, disposable income, and evolving fashion preferences.
According to Morgan Stanley, the global diamond certification market is projected to grow to $1 billion by 2028, up from $600 million currently. This growth will be driven by a 25% increase in lab-grown diamond certifications.
Mental block
According to Jewelbox’s Kochar, a big hurdle to increased adoption is the perception that lab-grown diamonds are not real diamonds.
“Diamonds have always been projected as an instrument of investment. But the truth is that they were never an investment. It’s the least-performing asset class if one considers it an asset. This notion is now being challenged and is bound to make many people uncomfortable,” Kochar added.
To this end, startups have a lot of work ahead of them. While nearly 30% of Jewelbox’s customers have made repeat purchases through its offline retail stores, the company believes that further improving purchase frequencies can help build a stronger brand.
It divides its customers into two cohorts—first-time buyers who want to make their first affordable diamond purchase and those who have always bought diamonds but are now looking for fresh options.
“The brand positioning for these two cohorts may be different. The idea is to build a brand that can cater to both segments without favouring one over the other. Like I said, diamonds continue to be aspirational, and it’s important for us to cater to all kinds of aspirations,” Kochar noted.
Crystal clear branding
However, building a truly successful brand will take a lot more. “Brands also need to be clear about what the product signifies. Is this a fashion accessory that ultimately becomes a premium embellishment, or is this a piece of jewellery by the classic definition which signifies value? Plus, it must also be considered that lab-grown diamonds may not account for the emotional value of ownership,” Sauce.vc’s Dholakia said.
The jewellery industry, especially in the lab-grown diamond segment, is capital intensive, Svaraa’s Shah said. “To realize our vision of building a truly omnichannel brand, we need significant investments. This includes opening more physical stores, strengthening our online presence, ramping up marketing and branding efforts, and positioning lab-grown diamonds as a luxury and aspirational category in India,” Shah added.
Trent launched its lab-grown diamond brand, Pome, last year, marking its entry into the sustainable luxury segment. Moreover, traditional jewellers, who were once wary, are also now taking note of the growing demand for lab-grown stones.
However, only a handful of them have started selling lag-grown diamonds, indicating that wide acceptance is still far off.
“We do receive inquiries from people in their 20s and early 30s but we haven’t started selling them yet. We may consider launching a few products if there are more inquiries,” said a jeweller based in Mumbai’s Ghatkopar area.
