Aukera, a Bangalore-based direct-to-consumer lab-grown diamond brand, has raised ₹90 crore in debt funding to accelerate its physical store expansion and enhance its product and omnichannel capabilities, marking a major step in its growth trajectory within India's rapidly growing lab-grown diamond market.
- ₹90 crore debt funding led by Alteria Capital with multiple investors
- Store count up to 35 in key Indian metros and emerging cities
- Market projected to reach $2 billion by 2036 at 14.8% CAGR
What happened
Aukera, founded in 2023 by Lisa Mukhedkar and Kumar Saurabh, has raised ₹90 crore (approximately $10 million) through a debt round to finance its store expansion and business growth. This funding round was led by Alteria Capital and included participation from InnoVen Capital, Lighthouse Canton, and an undisclosed bank. Aukera's capital infusion follows a $15 million Series B equity round led by Peak XV Partners last year, bringing its total funding raised to around $28.2 million.
Since the Series B, Aukera has significantly grown its physical presence, increasing its store count from 13 to 35 across cities like Pune, Lucknow, Dehradun, and Vizag, in addition to its initial markets such as Bengaluru, Hyderabad, and Delhi NCR. The company plans to use the new funds not only for expanding stores into existing and new geographical areas but also for investing in product innovation, talent acquisition, and strengthening its omnichannel retail infrastructure.
Why it matters
Aukera’s ongoing investment in retail expansion and omnichannel capabilities highlights the growing consumer acceptance and market potential of lab-grown diamonds in India. The startup operates in a competitive landscape that includes legacy players like Titan’s BEYON and Trent’s Pome, alongside other emerging startups such as True Diamond and Cosmos Diamonds. The Indian lab-grown diamond market is rapidly evolving, capturing significant investor and consumer interest.
Industry projections estimate that India’s lab-grown diamond sector will grow at a compound annual growth rate of 14.8%, reaching a market size of nearly $2 billion by 2036. Aukera's ambition to become a ₹1,000 crore brand underscores the scale and profitability potential within this niche. Its model integrating direct-to-consumer sales with physical retail outlets aims to establish a clear foothold during this market expansion phase.
What to watch next
Key developments to monitor include Aukera’s pace of new store openings across both established and emerging urban centers in India. How effectively the company leverages its funding towards product design innovation and omnichannel integration will also indicate its competitive positioning against both startups and established jewelry brands entering the lab-grown segment.
Additionally, investor appetite and valuation trends for lab-grown diamond startups in India could provide insight into the sector’s long-term sustainability and growth potential. The broader market performance and customer adoption rates will shape Aukera’s trajectory as it seeks to scale operations and customer reach in a fast-evolving luxury and sustainable jewelry space.