Editor’s Note
This investment marks a strategic move for Ethera to expand its retail presence and capitalize on the fast-growing market for lab-grown diamonds in India.
This ₹25 crore investment for Ethera is a significant step, focused on scaling the company’s operations, particularly strengthening its physical retail footprint across India. The primary objective of this capital infusion is to capitalize on the growing consumer trend towards lab-grown diamonds, as this segment is expanding rapidly. This partnership with Bluestone, a major player in the Indian jewelry market, reflects the broader industry trend of strategic investment and potential consolidation in the lab-grown diamonds space.
The ₹25 crore funding from Bluestone provides Ethera with the necessary resources to execute its ambitious expansion plans. This fund will be used to expand the network of five stores currently present in Bengaluru and Delhi, with plans to open several new stores in the near future. In addition to physical expansion, Ethera intends to strengthen its in-house design capabilities, enhance its technology infrastructure for seamless omni-channel operations, and increase brand awareness. This multi-pronged approach is designed to capture a significant share of India’s $500 million lab-grown diamond jewelry market, which is recording strong annual growth of 35-40%.
Ethera operates in a dynamic and increasingly competitive Indian jewelry market. The overall jewelry market is estimated to reach USD 151.4 billion by 2034, with a compound annual growth rate (CAGR) of 5.30%. Meanwhile, the lab-grown diamond segment specifically remains a growth engine. India’s lab-grown diamond market is projected to grow from $395.2 million in 2025 to $1.57 billion by 2035, growing at a CAGR of 14.8%. Ethera’s focus on IGI-certified lab-grown diamonds and BIS-hallmarked gold aligns with the growing consumer demand for ethical, transparent, and high-quality luxury products.
Regarding competitors, companies like Senco Gold have a market cap of approximately ₹5,828 crore (as of February 6, 2026) and are established players in the organized retail segment. CaratLane, part of Titan Company, operates on a strong digital-first model. Titan, with a market cap exceeding ₹3.6 lakh crore, represents the scale of established giants. The investor Bluestone, with a market cap of $736 million as of January 29, 2026, is a significant omni-channel retailer, although it has reported net losses in recent financial years.
Investment by a direct competitor or partner like Bluestone in Ethera is considered a strategic move, potentially aimed at diversifying its own lab-grown diamond portfolio, securing partnerships, or seeking future consolidation in a rapidly changing market.
Despite strong market growth, Ethera faces significant challenges. The jewelry sector is highly competitive, where established brands like Titan (Tanishq) and Senco Gold have substantial market share and brand loyalty. Ethera’s reliance on Bluestone’s strategic support, while beneficial, could also create dependency or strategic friction if Bluestone’s own objectives change. Rapid expansion in physical retail involves significant capital expenditure and operational risks, especially for a new brand. Furthermore, the lab-grown diamond market, while growing, is subject to price pressure due to increasing supply and potential commoditization, which could impact profit margins. The investor Bluestone has also faced financial difficulties, reporting net losses, which could indirectly affect confidence in its investment strategy, even if its revenue is substantial.
Ethera is strategically positioning itself to leverage the strong growth of India’s lab-grown diamond market. With retail expansion, design innovation, and continued investment in technology, the company aims to carve out a significant niche. India’s lab-grown diamond sector is expected to see strong double-digit growth, driven by younger consumers seeking ethical, affordable, and stylish alternatives to traditional diamonds. Ethera’s success will depend on its ability to differentiate itself through design and customer experience while navigating the inherent risks of scaling a retail operation in a highly competitive and volatile market.