India’s lab-grown diamonds sparkle as investors rush in

A wave of investor capital is flowing into India’s laboratory-grown diamond (LGD) segment, as fast-scaling brands tap rising consumer adoption in a market now worth well over $300 million. New-age brands have raised multiple rounds of capital on the back of growing market share and improving margins.

- Priyamvada C.

Actor Shilpa Shetty-backed Limelight, which is in talks to raise its second round of capital this year, joins the growing list of other small brands such as Onya, Giva, Jewelbox, Lucira Jewellery and Aukera, among others, who have snagged monies in recent months. Limelight has appointed Ambit Capital to raise about $20 million to fund its expansion plans, two people familiar with the matter said.

Confirming the fundraise, the six-year-old firm’s co-founder Pooja Madhavan said the funds will be used towards store expansion and brand building as it looks to touch 100 stores over the next year. “We are in final talks with growth PE funds and reputed family offices (for the fundraise),” she told Mint.