Private equity firm Multiples is nearing a deal to invest $80-100 million into jewellery startup Giva, valuing the company at ₹6,000 crore. The funds will support retail expansion and lab-grown diamond manufacturing. While revenue has grown significantly, investors will monitor the company's ability to control rising losses in a competitive market.
Private equity firm Multiples is in advanced discussions to acquire a stake in Bengaluru-based jewellery startup Giva. The deal, expected to range between $80 million and $100 million, would value the jewellery brand at approximately ₹6,000 crore. This investment follows a series of funding rounds that have helped the company scale its presence across the country.
The capital infusion is planned to support Giva’s growth strategy, which includes opening new retail outlets and increasing inventory. A significant portion of these funds is expected to be directed toward enhancing manufacturing capabilities for lab-grown diamonds, a segment where the company is looking to increase its market share.
Balancing Growth and Financial Performance
While the company has shown rapid top-line growth, with revenue reaching ₹518 crore in FY25, this 89% year-over-year increase has come with higher costs. During the same period, the company's losses widened by 22%. For potential investors and stakeholders, this presents a clear financial picture: Giva is prioritizing aggressive expansion and customer acquisition over immediate profitability.
High marketing expenditure remains a notable factor in the company’s financial structure. As the business continues to scale, management faces the challenge of optimizing these costs while maintaining the brand's reach in a crowded market.
Lab-Grown Diamonds and Competitive Risks
The company’s focus on lab-grown diamonds aligns with a broader shift in consumer preferences toward more affordable and design-flexible jewellery. However, this segment is also susceptible to price fluctuations. As supply increases, wholesale prices for lab-grown diamonds have faced downward pressure, which could impact profit margins for retailers in the coming years.
Giva also operates in an intense competitive environment, facing direct challenges from established direct-to-consumer jewellery players like CaratLane, Bluestone, and Melorra. These competitors are also vying for dominance in the organized jewellery sector, particularly in Tier-II cities where Giva is expanding.
Looking ahead, the main monitorables for the company will be its ability to improve operational efficiency and manage rising losses. Investors will track whether the new capital helps the company achieve a sustainable path to profitability, or if the intense competition requires continued high spending that keeps margins under pressure.