• India's D2C jewellery sector has seen a surge in funding, surpassing the US and marking a new growth era.
• The shift is driven by evolving consumer preferences and technological advancements like virtual try-on tools and AI-powered personalisation.
• The rise of the D2C model in the jewellery sector is part of a larger trend of digital transformation across industries.

The Indian Direct-to-Consumer (D2C) jewellery segment has seen a significant surge in funding this year, surpassing the United States and marking a new era of growth for the industry. With over 550 startups, the sector has attracted $103 million in funding to date, according to a report by market intelligence platform Tracxn.

It marks a 57% increase from the $66.3 million secured in 2022, highlighting the rapid growth and potential of the D2C jewellery segment in India.

The third quarter of 2023 marked a historic moment for the segment, bringing in $71.5 million, the highest-funded quarter in the country's history. Bengaluru, Chennai, and Mumbai emerged as the top cities for D2C jewellery funding, with Bengaluru contributing over 77% of the total.

On a global scale, India has taken the lead in terms of funding share within the D2C jewellery sector, surpassing the US and Finland, and accounting for over 40% of total funding.

Digital Transformation Across Industries

This shift is driven by evolving consumer preferences for personalised, convenient shopping experiences, and 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.

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

At the same time, banks are paying huge sums to attract technology talent in fields such as machine learning and generative AI. The future of the industry looks promising, with India leading the way in the D2C jewellery sector and setting a benchmark for other industries to follow.