Why Lab-Grown Diamonds Are Yet To Sparkle

Diamonds are forever. But companies selling lab-grown diamond jewellery are feeling the pressure

- Suneera Tandon

In 2023, following requests from consumers across its silver jewellery stores, start-up Giva began retailing lab-grown diamonds (LGDs) in select outlets to assess consumer demand. It didn't involve too much of an investment—while LGDs are identical to mined diamonds in many ways, including chemical composition, they are a whole lot cheaper.

"Consumers were demanding lab-grown diamonds. Also, with gold prices rising, new-age consumers are seeking alternatives such as accessible diamonds. When we conducted a pilot in 10 of our stores, we witnessed significant demand, which led us to expand to multiple stores," said Ishendra Agarwal, founder and CEO of Giva, which is backed by Premji Invest and A91 Partners.

The chain, which started out in 2019 selling silver jewellery, now operates over 230 stores across India. Of these, 130 currently sell lab-grown diamonds, and the plan is to expand them to all stores. Agarwal says that while Giva's average ticket size was around 2,000 when it solely retailed silver pieces, the addition of lab-grown diamonds has taken it up sharply to ₹16,000-20,000.

The lab-grown diamond segment currently contributes approximately 20% to the company's overall business. Giva plans to increase that share, while expanding its store count to 800-1,000 in the next 4-5 years.

Agarwal is among dozens of founders chasing this emerging market, which has caught the attention of traditional business houses, entrepreneurs with no prior experience in jewellery retailing, and investors eager to back a business once dismissed.

As of February 2025, nearly 30 lab-grown diamond brands operated in India. Nine of these sell online, according to data sourced from retail consulting firm Wazir Advisors. The offline brigade, meanwhile, operates well over 200 stores selling lab-grown diamond jewellery across India.