Jewellery brand Giva is in advanced talks to raise $80-100 million from investors including TPG and Sofina. The capital will support expansion into the growing lab-grown diamond market, following a year of high revenue growth alongside wider losses.
Bengaluru-based Giva, a jewellery retailer known for its silver and diamond collections, is reportedly in the final stages of closing an investment round worth between $80 million and $100 million. Advanced negotiations are underway with private equity firms such as TPG, Sofina, and Multiples. If completed at the anticipated valuation of ₹6,000 crore, the deal would mark a major capital infusion for the company as it seeks to scale its physical retail footprint and product offerings.
Strategic Use of Capital
The funding is expected to include both primary capital, which goes directly into the company for operations, and secondary capital, which allows early investors to sell part or all of their stakes. Giva plans to use this capital to increase its store count, with an ambitious target of adding 150 new retail outlets this year. A significant portion of this expansion is aimed at tier-II cities, where the company sees untapped demand. Beyond physical stores, the company is investing in broadening its inventory, particularly within its lab-grown diamond segment, which has become a key focus area for the brand.
Financial Performance and Market Trends
Giva’s financial profile shows a business in a rapid growth phase but still managing the costs of that expansion. In FY25, the company reported operating revenue of ₹518 crore, reflecting an 89% increase compared to the previous year. However, the costs associated with scaling its operations and opening new stores have impacted the bottom line, with losses rising to ₹72 crore from ₹59 crore in FY24. For investors, the ability to balance aggressive retail expansion with a path toward narrowing these losses will be a critical monitorable in the coming quarters.
The broader market for lab-grown diamonds in India is seeing increased interest, as consumers move toward more affordable alternatives to natural diamonds. While established players like CaratLane, BlueStone, and Melorra are also competing for market share, Giva is positioning itself by targeting younger demographics who prefer modern designs. The sector's growth is supported by data from research firm Redseer, which estimated the segment at $300-350 million in 2024 with a projected 15% compound annual growth rate over the next decade.
Future Monitorables
As Giva continues to expand, investors should track the execution of its new store openings and the company’s ability to maintain its high revenue growth rate without further widening its losses. The success of its foray into lab-grown diamonds will also depend on consumer acceptance and the company’s ability to manage inventory costs. The next important updates will include the finalization of the funding deal, the official store launch schedule, and upcoming disclosures regarding the company's progress toward achieving better profitability margins.