Just last week, omnichannel lab-grown diamond retailer Jewelbox announced that they had raised $3.2 million in its pre-Series A round to fuel its retail expansion. The round was led by V3 Ventures, along with participation from Atrium Angels, Dexter Ventures, Infinyte Club, Samarthya Capital, and existing investor JIIF.

In recent months, the lab-grown diamond industry has witnessed a wave of investment, particularly in the retail sector in India. With growing consumer demand for sustainable and ethically sourced diamonds, investors are increasingly turning their attention to this market. This flood of capital is not just a sign of the growing consumer acceptance of lab-grown diamonds, but also reflects the shifting dynamics in the broader diamond market.

This surge in investment is part of a broader trend in India, where several significant deals have been announced over the past 15 months. Key investors are eyeing the country’s large, young, and increasingly eco-conscious consumer base. India has long been one of the world’s largest consumers of diamonds, and the rise of lab-grown alternatives presents a compelling business opportunity.

Some of the other major investments include:

CVD Diamond Makers: One of India’s top producers of lab-grown diamonds, CVD Diamond Makers, raised $5M in a funding round to boost its retail presence across the country. The company plans to expand its production capabilities and open new retail outlets to cater to growing demand for lab-grown diamonds, particularly in tier-2 and tier-3 cities.

The Diamond Factory: Another key player, The Diamond Factory, recently secured $10M in funding from venture capitalists to fund its new technology-driven approach to lab-grown diamond retailing. This investment will help the company enhance its online presence while also establishing more physical stores in major Indian cities.

Veer Gems: Backed by a $7.5M investment, Veer Gems is making strides in revolutionizing the lab-grown diamond jewelry market in India. With a focus on affordable luxury and customization, the company is targeting a niche segment of younger, tech-savvy consumers who are increasingly choosing sustainable options.

New Age Diamonds: New Age Diamonds, a startup focused on disrupting the traditional diamond industry with lab-grown diamonds, secured $3.5M in a recent funding round. This capital will be used to launch an AI-powered online platform that allows customers to design and purchase custom lab-grown diamond jewelry directly from the website, bypassing traditional retail models.

These investments are a clear indication that lab-grown diamonds are no longer a niche product in India but are becoming a mainstream choice for consumers. As more players enter the market, the competition is set to intensify, bringing innovation in both product offerings and retail models.

The future of lab-grown diamond retailing in India looks bright, with investments continuing to pour in. Companies that focus on consumer education, transparency, and sustainability are likely to thrive as India’s diamond market evolves.