Jewelbox, a direct-to-consumer lab-grown diamond jewelry brand, has secured US$3.2 million in a pre-series A funding round.

The investment was led by V3 Ventures, with contributions from Atrium Angels, Dexter Ventures, Infinyte Club, Samarthya Capital, and existing investor Jito Incubation and Innovation Foundation (JIIF).

The company plans to use the funds to expand its retail presence from eight stores to 30 by the end of 2025.

This expansion will occur through co-owned and franchise models, focusing on tier-I and tier-II cities, including Ludhiana, Chandigarh, and Bhubaneswar.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ India emerging as a global hub in the rapidly expanding lab-grown diamond market

Jewelbox’s $3.2 million funding reflects a broader trend in India’s lab-grown diamond industry, which is projected to become a $1.3 billion opportunity by 2033.

The global lab-grown diamond market is experiencing significant growth, estimated to reach $74.45 billion by 2032 with a compound annual growth rate of 14.11% 1.

India already manufactures over 75% of the world’s lab-grown diamonds, positioning the country as a key production hub in the Asia-Pacific region 2.

Government support has strengthened the sector through initiatives like introducing specific import classification codes (71042010) for lab-grown rough diamonds, enabling better market tracking and transparency 3.

This regulatory infrastructure, combined with India’s established diamond cutting expertise, creates advantages for local brands like Jewelbox to scale domestically while potentially capturing global market share.

2️⃣ Omnichannel retail strategy becoming essential for D2C jewelry brands’ growth

Jewelbox’s plan to expand from 8 to 30 retail stores highlights a critical trend among D2C lab-grown diamond brands: physical retail remains vital despite digital origins.

The company’s revelation that offline channels generate larger order values, despite 40% of orders coming from online channels, demonstrates why brick-and-mortar expansion is crucial for maximizing revenue growth.

This trend is consistent across the industry, with other lab-grown diamond startups like Firefly also raising funds ($3 million) specifically to expand their retail presence in major Indian cities 4.