Augmont bets ₹100 cr on Akoirah’s lab-grown diamonds

Augmont is investing Rs 100 crore to launch its lab-grown diamond jewellery brand, Akoirah, with plans to open 100 stores in three years. The jewellery will feature recycled gold and responsibly sourced LGDs, aligning with the growing Indian LGD market, projected to reach US$ 1.2 billion by 2033.

Gold trading platform Augmont is investing Rs 100 crore to enter the lab-grown diamond (LGD) market with its new jewellery brand, Akoirah. The company plans to open 100 stores for the brand over the next three years.

Augmont director Ketan Kothari informed, “The initial investment outlay is Rs 100 crore. Later there will be a combination of franchisee stores along with company owned stores and funds will be added accordingly.”

Akoirah jewellery will be crafted using 100% pure recycled gold and responsibly sourced lab-grown diamonds, offering consumers a sustainable choice without compromising on quality or brilliance. The brand also guarantees 100% exchange and buyback value, with prices starting at Rs 5,000.

The Augmont offers a comprehensive ‘suite of services’, including digital gold, gold loans, gold coins, gold jewellery, jewellery on EMI, and bullion trading. The company serves over 40 million customers and operates a network of more than 100 physical stores and touchpoints.

“The penetration of mined diamond jewellery in India is less than 5 per cent, whereas 95 per cent consumers want to own diamonds. Mined diamonds have given negative returns and hence they are not an investment for Indian consumers, who are the smartest when it comes to value investments,” Mr. Kothari said.

According to an EY report, the demand for lab-grown diamonds (LGDs) is growing at a CAGR of 8.64% and is projected to reach US$ 39 billion by 2028. India’s LGD jewellery market, valued at approximately US$ 300 million in 2023, is expected to grow to US$ 1.2 billion by 2033.