Aukera raises ₹90 crore debt funding to expand lab-grown diamond jewellery business

Lab-grown diamond jewellery brand Aukera has raised ₹90 crore (over $10 million) in fresh funding through a debt round led by existing investor Alteria Capital, along with InnoVen Capital, Lighthouse Canton and a leading bank, as competition intensifies in India's fast-growing lab-grown diamond jewellery market.

The latest fundraise comes less than a year after the company secured $15 million in equity funding led by Peak XV Partners, with participation from Fireside Ventures, Sparrow Capital, Prath Ventures and Alteria Capital. The back-to-back capital infusion is aimed at strengthening the company's balance sheet and supporting its retail expansion strategy.

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The Bengaluru-based company has increased its store network from 13 to 35 outlets in the last one year. It has entered new markets, including Pune, Lucknow, Dehradun and Visakhapatnam, in addition to its presence in Bengaluru, Hyderabad and Delhi-NCR.

The fresh capital will primarily be used to open more stores across existing and new cities, while also funding investments in product development, design capabilities, technology and omnichannel infrastructure.

Aukera is positioning itself at the premium end of the lab-grown diamond jewellery segment, a category that has witnessed growing consumer acceptance amid rising demand for larger, high-quality diamonds at relatively affordable prices.

"This category will not be won on discounting—it will be won on trust, quality and brand. This capital lets us take that promise to many more cities, faster," said Lisa Mukhedkar, Founder and Chief Executive Officer of Aukera.

Kumar Saurabh, Co-founder of Aukera, said the lab-grown diamond industry will require significant capital investment as the market matures. "We believe this category will require the top player to invest at least ₹1,000 crore as the industry evolves. We are building both the balance sheet and the business with that objective," he said.

India's lab-grown diamond jewellery market has been expanding steadily, driven by younger consumers, changing buying preferences and increasing acceptance of sustainable alternatives to mined diamonds.