Aukera Raises ₹90 Cr to Expand Lab-Grown Diamond Business
The lab-grown diamond jewellery sector in India is heating up, and Bengaluru-based startup Aukera is leading the charge. On July 10, 2026, the company announced it has raised Rs 90 crore (approximately $10 million) in a fresh funding round. The round was led by existing investor Alteria Capital, with participation from InnoVen Capital, Lighthouse Canton, and an unnamed bank. This capital infusion will fuel Aukera’s aggressive expansion plans across the country.
Founded in 2023 by Lisa Mukhedkar and Kumar Saurabh, Aukera has quickly emerged as a prominent player in the sustainable luxury jewellery space. The brand specializes in lab-grown diamond jewellery, offering pieces that combine elegance, affordability, and environmental responsibility. By leveraging advanced technology to create diamonds in controlled laboratory settings, Aukera provides customers with stones that are chemically, physically, and optically identical to natural diamonds but at a fraction of the cost and with a significantly lower ecological footprint.
Funding Momentum and Strategic Expansion
This latest round comes just a year after Aukera raised $15 million in an equity round led by Peak XV Partners. That previous investment also saw participation from Fireside Ventures, Sparrow Capital, Prath Ventures, and Alteria Capital. The back-to-back funding highlights strong investor confidence in the lab-grown diamond story and Aukera’s execution capabilities.
The fresh Rs 90 crore will be deployed across multiple growth levers. Aukera plans to open new stores in both existing and untapped markets, invest heavily in design and product innovation, ramp up recruitment, and strengthen its technology and supply chain infrastructure to support both online and offline operations.
“This capital lets us take that promise to many more cities, faster,” said Lisa Mukhedkar, founder and CEO, in a statement. Her vision reflects the brand’s ambition to democratize access to high-quality diamond jewellery while promoting sustainability.
Since the previous fundraising, Aukera has demonstrated impressive execution. The company expanded its network of company-owned stores from 13 to 35 within a year. Initially focused on Bengaluru, Hyderabad, and the Delhi-NCR region, it has since entered new cities including Pune, Lucknow, Dehradun, and Visakhapatnam. This rapid physical retail rollout, complemented by a robust e-commerce platform, has helped the brand build a pan-India presence in a short span.
The Lab-Grown Diamond Opportunity
India is one of the world’s largest diamond polishing and jewellery markets. Traditionally dominated by natural diamonds, the industry is witnessing a paradigm shift towards lab-grown alternatives. Lab-grown diamonds require significantly less energy and water compared to mining, and they avoid the ethical concerns often associated with traditional diamond supply chains.
Kumar Saurabh, co-founder, emphasized the long-term potential of the sector. He noted that the eventual market leader would need to invest at least Rs 1,000 crore as lab-grown diamonds gain wider consumer acceptance as a permanent alternative to mined stones. Aukera’s current fundraising is a step towards building that scale.
Consumer preferences are evolving rapidly. Younger buyers, particularly millennials and Gen Z, are increasingly drawn to sustainable luxury. They seek transparency, value for money, and brands that align with their environmental and ethical values. Lab-grown diamonds fit perfectly into this narrative, offering larger carat weights, better quality, and customization options at competitive prices.
Aukera’s strategy of blending physical stores with digital presence is proving effective. While online channels allow for wider reach and education about lab-grown diamonds, experiential physical stores help customers touch, feel, and trust the product crucial in a high-involvement category like jewellery.
Challenges in a Competitive Landscape
Despite the promising tailwinds, the road ahead is not without hurdles. The natural diamond industry remains deeply entrenched, with strong marketing narratives built over decades. Educating consumers about the benefits of lab-grown diamonds while addressing misconceptions (such as perceived lower value or durability) remains an ongoing task.
Competition is also intensifying. Several players have entered the lab-grown diamond jewellery space, both in India and globally. Aukera will need to differentiate itself through superior design, quality control, customer experience, and omnichannel capabilities.
Supply chain resilience and consistent quality at scale will be critical as the company expands. Investments in R&D for new designs and innovative settings will help maintain a fresh product pipeline that appeals to diverse customer segments from engagement rings and wedding jewellery to everyday wear and gifting.
Building a Sustainable Luxury Brand
Aukera’s journey reflects the broader trend of sustainability becoming a core value proposition in luxury. By focusing on lab-grown diamonds, the brand is not only reducing environmental impact but also challenging traditional notions of value in the jewellery industry.
The company’s leadership brings complementary strengths. Lisa Mukhedkar’s focus on brand building, customer experience, and rapid scaling complements Kumar Saurabh’s strategic vision for long-term market leadership. Together, they have built a company that is as much about technology and sustainability as it is about timeless craftsmanship.
With the latest capital, Aukera is well-positioned to accelerate its store expansion, enhance its digital infrastructure, and invest in talent that can drive innovation. The goal is clear: to become the preferred destination for conscious consumers seeking beautiful, affordable, and responsible diamond jewellery.
Looking Ahead
As Aukera continues its expansion journey, the coming years will be decisive. Success will depend on execution excellence, maintaining high customer satisfaction, and navigating the evolving regulatory and competitive landscape of the diamond industry.
The Rs 90 crore raise signals that investors see substantial potential in India’s lab-grown diamond market. For consumers, it means greater access to high-quality, sustainable jewellery options across more cities. For the industry, it reinforces the growing acceptance of lab-grown diamonds as a mainstream choice.
Aukera’s story is still in its early chapters, but with strong backing, rapid execution, and a compelling sustainability narrative, the brand is carving out a sparkling future in India’s jewellery market. As more cities welcome Aukera stores, the promise of accessible luxury is set to shine brighter than ever.