Aukera Jewellery Set to Raise $15 Million from Peak XV for Growth in India’s Lab-Grown Diamond Market

The Bengaluru-based startup Aukera Jewellery, specialising in lab-grown diamond (LGD) jewellery, is in talks to raise $15 million in a Series B funding round led by Peak XV Partners. This funding will help scale operations for the company due to increasing competition in the $2.6 billion LGD market in India.

Company Overview

Established in the year 2023, Aukera was co-founded by Lisa Mukhedkar and Kumar Saurabh. It has occupied space as an emerging player in the LGD segment. The range of products includes diverse jewellery items, such as bracelets, earrings, pendants, and necklaces, made of gold and silver. The company believes in its art form and craft and works with integrity to create beautiful and precious fine diamond jewellery.

Previous Funding and Growth

Aukera raised INR 26.7 crore (nearly $3.2 million) in a Series A funding round in August 2024, with Fireside Ventures being the lead investor. The funding was also significant because it was the company's first institutional funding and highlighted growing interest among investors in the lab-grown diamond space. The money was intended for expansion and general corporate purposes, while Fireside Ventures now holds a 19.20% stake in the company.

Lab-Grown Diamond Market in India

Consumer demand for sustainable and ethically sourced jewellery is driving significant growth in India. India's lab-grown diamond market was valued at $2.61 billion in 2023 and is expected to grow at a 13.73% CAGR, reaching $8.31 billion by 2032. This means ample opportunities for companies like Aukera to innovate and gain some market share. The acceptance of lab-grown diamonds, allied to their price positioning below-mined diamonds, has further augured well for this trend.

Strategic Implications of the Funding

The expected funding from Peak XV Partners for an amount of $15 million is anticipated to be utilised for scaling the operations of Aukera, enhancing products, and establishing further presence in the market. It is in accordance with the company's strategy to catch up with the dynamically changing trends of the LGD market and consumers' preferences. It also includes existing investors like Fireside Ventures in this funding round, proving their faith in the business model and future growth potential of Aukera.

It is the pursuit of additional funding by Aukera Jewellery, which reiterates the purpose of growth and innovation in the lab-grown diamond industry. The company, supported by important investors, will be able to swim itself in the competing terrain into which it has to grow while also catering to the rising demand for sustainable and ethical luxury. It is true that they are sustainable and interesting in that regard.

From Pre-seed to Late Stage Funding - Sources of Every Funding Stage

As the business grows, it requires funding for expansions and research. There are different stages of funding that respond to the different needs of a growing business.

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