India shifts to digital, sustainable, affordable jewellery: Tracxn Report

India’s jewellery market was largely unorganised, with local jewellers being the primary experts for customers. However, the rise of online brands has changed the way the sector has evolved.

In the D2C jewellery sector, India has emerged as a significant hub, with over 550 start-ups out of the 2,740 globally operating in this space. In 2023, the D2C jewellery segment in India raised a total of $104 million, marking a 57 per cent increase from the $66.3 million secured in 2022. As of 2024, the segment has already garnered $103 million in funding. 

This investment surge is driven by evolving consumer preferences for personalised, convenient shopping experiences, alongside technological advancements such as virtual try-on tools and AI-powered personalisation. The industry’s focus on sustainability and customisation has further fuelled its expansion, attracting both investors and consumers alike.

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India is the second-largest importer and consumer of gold in the world, following China. 

“As consumer preferences reshape the jewellery market, we stand on the brink of an era defined by innovation and reinvention. With the sector continuing to grow and mature, brands that can adapt to changing demands, focus on sustainability, and leverage digital platforms are poised to lead the next phase of growth. This is truly an exciting era of reinvention for the jewellery market, both in India and globally,” said Neha Singh, Co-Founder of Tracxn.

In 2023, early-stage funding reached $24.4 million, reflecting a 95 per cent increase from the $12.5 million raised in 2022. The current year has seen further progress, with $28.2 million raised to date—the highest early-stage funding recorded in this segment.

Late-stage funding followed a similar upward trajectory, with $77.1 million raised in 2023—a 249 per cent increase from the $22.1 million secured in 2022. This set a new record for late-stage funding in the segment, and 2024 has already seen $72.6 million in late-stage investments so far.

In seed-stage funding, only $2.4 million was raised, from the $31.7 million secured in 2022. 2024 has shown a modest recovery, with $2.6 million in seed-stage funding so far.

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According to the report, Q3 2024 emerged as the highest-funded quarter in the segment’s history, bringing in $71.5 million. However, no funding rounds exceeding $100 million have been recorded over the past two years.

Key players such as BlueStone, which offers subscription-based precious jewellery, raised a total of $193 million over the past two years through five consecutive funding rounds.

Another notable company, Ultrahuman, a provider of smart health rings, secured $39.6 million across three consecutive rounds in the same period.

Bengaluru, Chennai, and Mumbai have emerged as the top cities for funding in India’s D2C jewellery start-up ecosystem, with Bengaluru accounting for over 77 per cent of the total funding in this segment.

• Also read: Elev8 Venture Partners targets D2C start-ups for portfolio expansion

Saama Capital, Accel, and Kalaari Capital are the leading investors overall in this space. In the past two years, All In Capital, Blume Ventures, and AC Ventures have stood out as the top seed investors, while Alteria Capital, Premji Invest, and A91 Partners have dominated early-stage funding. For late-stage investments, Nava Limited, Pratithi Investments, and 360 One have been the top backers in this segment.