Will Jewelbox’s Everyday Designs Carve A Niche In Lab-Grown Diamonds?

Vidita Kochar Jain was stunned by the big diamond studded on the proposal ring. The boyfriend was aspiring to be the husband. It must have been frightfully expensive – the thought kept gnawing at her until she came to know that it was a man-made diamond created in laboratories, barely in a few weeks. 

Vidita wasn’t aware that the chemistry that goes behind the making of these vanity rocks could now create the magic sparkle at a cost that suits the budget-conscious Indian as natural diamond gets increasingly out of bounds. 

What makes lab-grown diamonds 80-95% cheaper than natural diamonds? It was an obvious curiosity for someone like Vidita, who experienced the artificial gemstone for the first time. It takes 100-300 Cr years for carbon to crystalise into natural diamonds deep underground. It’s the rarity of the gemstone that makes it so expensive.  

Diamond remained synonymous with desire, thanks to the price it commands, but the enigma it flaunts kept beckoning humans for centuries.   

Diamonds manufactured in laboratories have come up as the best and the most affordable alternative to natural diamonds. Although it took some time to charm the Indian buyer, an evolving consumer preference has fostered a $264.5 Mn (around INR 2,292 Cr) market for lab-grown diamond jewellery in the last few years that’s set to average a 14.8% growth rate through the next 10 years. 

Jewellery marques like Pome, from Tatas-owned Trent, Senco Gold arm Sennes Fashion, and Giva hitched a ride on the drifting preference and brought lab-grown diamonds into their collections. New-age brands such as Fiona Diamonds, Aukera Jewellery, and Limelight Diamonds too are pushing the boundaries for innovation with lab-grown diamonds. 

The possibilities in the emerging market attracted business brains and innovators from every sphere. Vidita and her brother Nipun Kochar didn’t miss the bus. While brands rushed for grandeur, Jewelbox spotted a rather overlooked market in everyday diamonds. The Kolkata-based startup, founded by the siblings, chose to stand out by focusing on accessibility, customisation, and strategic product positioning. Unlike most brands that target high-end buyers, it creates everyday-wear lab-grown diamond jewellery in a price range of INR 5,000 for nose rings to INR 5 Lakh for bridal sets. 

The company saw its topline zoom to INR 16.5 Cr in FY24 from INR 3.8 Cr within a year as the rush for lab-grown diamond jewellery spiked. 

Lab-grown diamonds are created in highly controlled environments using advanced processes like chemical vapour deposition (CVD) and high-pressure high-temperature (HPHT). These methods replicate the process of formation of natural diamonds, using pure carbon, high pressure, and extreme heat to develop a crystalline structure. The diamonds produced this way are chemically, physically, and optically identical to natural ones.

The entire process takes just a few weeks until the rough cut is polished and the stone is ready to be fit into pieces of jewellery. Lab-grown diamonds not only cost a meagre fraction of the natural diamond, but they are also gaining ground for their sustainability and ethical production. 

Natural diamond is sourced from coal mines. The mining practices often involve the felling of trees, deforestation, and evacuation of locals, and cause major threats to the ecological balance. 

The lab-grown alternatives have been in existence since the 1970s, but they entered the Indian market only around 2008-10. Their popularity surged only in recent years as consumer preferences changed. As lab-grown diamonds caught the fancy of Indian consumers and its bigger and older peers rushed to ride the wave, Jewelbox entered the market in 2022. 

Out Of The Box 

The jewellery startup operates across ecommerce platforms and offline retail outlets, offering a diverse range of new-age ornaments for men and women, including rings, earrings, nose rings, pendants, bridal jewellery, bands, and bracelets.

What’s unique about Jewelbox is its ever-growing catalogue, with 300 designs launched every month. 

What plays behind the ever-growing portfolio? The idea is Vidita’s brainchild. The chartered accountant by profession had served Swiggy for over three years, managing diverse non-food categories. She played a key role there in launching new categories on Instamart. 

The thought of doing something on her own crossed her mind after she had to relocate from Bangalore to Gujarat and her role changed. Vidita had floated a startup advertising agency with her brother Nipun back in 2013, when he told her about the growing traction in lab-grown diamonds. They dusted off the idea and set out on extensive research. 

They spoke to more than 5,000 people and over 30 jewellers to understand the industry scenario. Although most jewellers dismissed lab-grown diamonds as a risky idea, they found that in the US, the category had grown rapidly, increasing its market share from just 1% to 19% within four years. 

“Consumer trends from developed markets often, if not always, make their way to India, indicating strong potential,” recounted Vidita. 

They found that despite only 4-5% of Indians owning diamond jewellery, its aspirational value remained high. Most people instinctively associate engagement rings or statement jewellery with diamonds. This pointed to a significant untapped demand, with lab-grown diamonds offering a more accessible alternative.

“This made us realise that the natural diamond industry had intentionally kept this innovation under wraps for years. The reluctance stemmed from concerns that if lab-grown diamonds gained traction, consumers might shift away from natural diamonds. That fear is now turning into reality as consumer perceptions and buying behaviours evolve, marking a significant shift in the jewellery industry,” Vidita told Inc42.

With their research insights and limited knowledge of lab-grown diamonds and the retail space, the founders rolled out Jewelbox in May 2022, starting with retail stores in their home city, Kolkata, with the goal of expanding the brand across India. The vision for the brand at the time was to bridge the affordability gap and make diamond jewellery more accessible.

Breaking Into The Market

The founders stepped out of their comfort zone to launch Jewelbox, but they soon encountered multiple hurdles. One of the biggest challenges was the lack of awareness about lab-grown diamonds in the market. When they opened their stores, only about one in 10 customers had even heard of lab-grown diamonds, and most had never seen or experienced them first-hand. 

“Despite explaining to customers that lab-grown diamonds possess identical chemical, optical, and physical properties to natural diamonds and are made of 100% carbon, most remained sceptical. Educating customers about the product and building trust in the category proved to be a difficult task,” Vidita said.

What worked in favour of the founders was that, around the same time, the government began promoting lab-grown diamonds. The Union Budget 2023-24 proposed a five-year research grant to IIT Madras to boost indigenous production of lab-grown diamond machinery, seeds and recipes. It also proposed to establish an India Centre for lab-grown diamonds there at an estimated cost of INR 242.96 Cr for five years.

“This endorsement from the government helped reduce the scepticism over lab-grown diamonds among customers substantially,” Vidita said.

That was not the end. Expanding a jewellery brand across India had its own set of challenges. Unlike traditional jewellers who operate in select cities, Jewelbox had a pan-India vision from the start. This meant they had to streamline operations and logistics to ensure smooth expansion. The team spent months researching, planning, and optimising inventory management to cater to diverse regional preferences. 

According to the cofounder, jewellery trends vary widely across the country – what’s popular in South India may not appeal to customers in the Northeast or in the West. Even within a city like Kolkata, different stores witness distinct preferences. 

“We decided to flood the market with options. Today, we launch 300 designs every month, while making sure that no design is repeated across stores. This allows each location to cater to its unique customer base,” she said.

The effort paid off. The brand has scaled from just 300 SKUs to over 3,000 SKUs. Its key USP lies in catering to multiple segments, from everyday jewellery to occasion-specific and religious designs. It also differentiates itself by offering customised and personalised orders, ensuring delivery within a 21-25-day timeframe.

For manufacturing, Jewelbox relies on exclusive tie-ups in Mumbai and Surat, who manage the supply on a just-in-time basis. The process starts with procuring lab-grown diamonds and gold from the market, while the designing is handled entirely in-house, backed by extensive research to cater to evolving customer preferences. 

Thrashing Out The Blueprint 

The startup has built a strong customer base with over 800 monthly users and 9,000 jewellery pieces sold. A key driver of this growth has been its appearance on Shark Tank India.

After appearing on Shark Tank India Season 3, the startup saw a massive five-fold jump in revenue. “At the time, jewellery sales were predominantly offline, with a 90% offline and 10% online split. However, after Shark Tank, this completely flipped to 90% online and 10% offline. While the online share has since stabilised at 40%, the brand sees this as a strong number, given the challenges of selling jewellery online,” Vidita added.

Jewelbox has a presence in eight stores and is looking to launch at least two outlets every month. It recently launched a store in Bengaluru and plans to expand further in Hyderabad and Mumbai, followed by Tier II cities such as Lucknow and Bhopal.

The company is looking at both company-owned (COCO) and franchise-operated (FOCO) models to scale its offline presence. It is in advanced discussions for its next funding round and has raised INR 3.5 Cr from institutional backers JITO Incubation & Innovation Foundation (JIIF).

On the financial side, the startup ended FY24 at INR 16.5 Cr. It aims to close FY25 with INR 34 Cr, with an MRR of INR 3.5 Cr. The company has ambitious plans to reach a revenue milestone of INR 120 Cr by FY26.

It is also innovating on the product front. The company has exclusive right to market a special ‘Padma Cut’ diamond for lab-grown diamonds in India, featuring 80 facets compared to the standard 56-60. 

The company also looks to integrate AI and roll out virtual try-ons both in-store and online this year itself. 

The founders believe the startup is on track, but the biggest roadblock ahead for them alerts that the category itself is very new even now. The market is certainly growing, but in a country like India, Jewelbox isn’t just competing with traditional players – it is trying to create an entirely new segment and replace natural diamonds. 

Changing the deep-rooted consumer mindset around diamonds, which have always been seen as a symbol of status and tradition, is not a small task. It’s not just about selling a product; it’s about shifting an entire cultural perception.

[Edited By Kumar Chatterjee]