Bengaluru-based ONYA has raised ₹12.5 crore in a Pre-Series A round led by Divisa Family Office. The funds will fuel expansion into Pune and Hyderabad using a hybrid retail model. Investors should track how the startup manages its 80% buyback policy as competition and price volatility grow in the lab-grown diamond market.
Bengaluru-based jewellery startup ONYA has raised ₹12.5 crore in a Pre-Series A funding round led by Divisa Family Office. The company plans to use this capital to grow its physical retail presence, specifically targeting new flagship stores in Pune and Hyderabad. This move marks the next phase of growth for the firm, which currently operates eight experience centers across the country.
Scaling with a Hybrid Retail Model
The company is adopting a hybrid strategy for its expansion, which includes a mix of company-operated stores and franchise partnerships. By moving into new cities like Pune and Hyderabad, ONYA aims to capture a larger share of the urban middle-class market that is increasingly shifting toward lab-grown diamonds. This expansion comes after the firm secured ₹5.5 crore in a pre-seed round in November 2025, indicating a steady flow of capital to build out its infrastructure and digital capabilities.
Strategy and Competitive Positioning
The lab-grown diamond sector in India is currently seeing intense competition, often driven by price cuts. Rather than engaging in a direct price war, ONYA is attempting to differentiate itself through a focus on design and aesthetics. The brand recently launched its Signature collection, which features a patented setting inspired by neoclassical architecture. By prioritizing craftsmanship and design, founders Himani Yadav and Gaurav Choudhary hope to position their products as daily wear rather than just occasional luxury items.
The Buyback Policy and Associated Risks
One of the most notable features of ONYA’s business model is its commitment to an 80% buyback policy. In the lab-grown diamond industry, secondary market liquidity—the ability to resell the diamond later—is often a major concern for buyers. By guaranteeing a buyback at 80% of the market rate, the company is attempting to build consumer trust. However, from an investor perspective, this policy creates a financial commitment. The company will need to ensure it maintains strong profit margins and cash flow, as a sharp decline in market prices for lab-grown diamonds could put pressure on the balance sheet if many customers choose to return their purchases.
Monitorables for Investors
Moving forward, the primary area to watch is how the company balances its aggressive retail expansion with its buyback obligations. Retail chains often face high costs related to rent, staff, and inventory, and the success of the hybrid model will depend on the brand's ability to maintain demand in new locations. Investors and industry observers will likely keep an eye on whether the company can maintain its design-led pricing power in a market that remains sensitive to the rapidly falling costs of lab-grown rough diamonds.