Zinara has raised ₹3.61 crore to expand its lab-grown diamond jewellery business, joining startups such as Aukera, Limelight and Jewelbox in a market attracting investors and traditional jewellers alike. India's lab-grown diamond jewellery market was worth ₹3,452 crore in FY25 and could reach ₹5,179 crore by FY28. Nine startups raised $26.4 million in 2025, compared with $4.7 million in 2024. Even Titan has entered through beYon.

The attraction is understandable. Lab-grown diamonds look, sparkle and last exactly like natural diamonds. Without specialised equipment, nobody can tell which one you're wearing. Yet they cost substantially less. In the US, lab-grown stones accounted for 61% of engagement-ring centre stones in 2025, up from 12% in 2019. Consumers clearly don't mind how their diamonds were created when they can buy a larger one for less money.

But what benefits consumers may hurt the companies selling them. Unlike natural diamonds, lab-grown stones can be manufactured in increasing quantities. As production improves, prices fall. Wholesale prices dropped another 26% in 2025. India's polished lab-grown diamond exports declined 10.55% in value during FY26 despite rising volumes. Meanwhile, exports of gold jewellery containing these stones grew 31.3%. The money increasingly appears to be in selling finished jewellery rather than producing diamonds.

That creates a problem for startups. If everyone can buy similar diamonds from the same manufacturers, there is little stopping competitors from offering comparable jewellery. Titan already has stores, suppliers and customer trust, while younger brands must spend heavily on advertising and expansion.

Resale is another weakness. Some brands advertise 100% exchange or 80% buyback, but these promises often depend on the diamond's current value, not its purchase price. A diamond originally valued at ₹60,000 could fetch just ₹19,200 under an 80% buyback policy if its market value falls to ₹24,000. Gold doesn't face the same manufacturing-driven price pressure.

Lab-grown diamonds could eventually become everyday fashion jewellery rather than symbols of wealth. That may expand demand while reducing the prestige and pricing power associated with diamonds. Natural diamonds could retain buyers seeking rarity, while lab-grown stones capture the affordable market.

For investors, growing sales alone won't be enough. Inventory, advertising, stores and falling prices can consume profits. India may sell far more diamonds in the coming years, but that doesn't mean everyone selling them will make money.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

Indian governement has rejected Elon Musk’s allegation that Starlink is being unfairly blocked in India, calling the country’s satellite communications framework fair and non-discriminatory.

Starlink, Jio and Eutelsat OneWeb are are undergoing security assessments, and still awaiting final approvals.

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The proposed merchant discount rate on eligible UPI transactions may be postponed from October 15 to January 1, 2027 following opposition from retailer associations.

The uncertainty hit listed fintech stocks. Paytm closed 5.4% lower, while Pine Labs and MobiKwik declined 4.3% and 4.5%, respectively.

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Ericsson has announced the winners of its Innovation Challenge 2026 at India Mobile Congress, spotlighting startups using 5G and AI to tackle real-world problems.

The competition focused on emerging connectivity solutions across sectors.

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Blinkit recorded a 94.4% average in-stock rate across 150 tracked products, according to a Bernstein study.

Flipkart Minutes ranked second at 88.7%, followed by Swiggy Instamart at 83.8% and Zepto at 82.5%.

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The RBI has clarified that individuals undertaking personal foreign-exchange transactions, including overseas tutoring and small software assignments, will not need to report them under the new FEMA framework.

Exporters can also use self-declarations for individual bills of up to ₹10 lakh, while established SaaS companies are expected to face mainly procedural changes.

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Miko maker Inner Sky Labs has launched foundation models covering vision, audio, touch, action, and safety for robots and other physical systems.

Inner Sky Labs is now expanding beyond children’s robots.

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IT Minister Ashwini Vaishnaw said the government will release an AI regulation consultation paper within a month. The proposed blueprint will focus on AI safety, cybersecurity, deepfakes, user harm, and workforce skilling.

Separately, Prime Minister Narendra Modi called for a global mechanism to tackle cyber fraud and deepfakes across borders.

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Zero-added-sugar beverage brand Sorry Sugar has appointed Palash Arneja as its founder and CEO. Arneja previously incubated the brand with Wolfpack Labs.

He will lead its product, distribution and growth strategy.

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