Gold Rush for Gen Z: Shraddha Kapoor’s Palmonas Bags ₹55 Crore to Redefine Everyday Luxury

Image Source: Indian Retailer

Shraddha Kapoor’s jewellery brand Palmonas has clinched a ₹55 crore Series A funding round, marking a pivotal moment in India’s fast-evolving demi-fine jewellery landscape. With a sharp focus on Gen Z and millennial consumers, the Pune-based startup is gearing up for aggressive offline expansion, product innovation, and a deeper push into lab-grown diamond offerings. Here's a comprehensive breakdown of the announcement and its broader implications.

1. Funding Snapshot and Strategic Intent
- Palmonas raised ₹55 crore in its first institutional round, led entirely by Vertex Ventures Southeast Asia and India, a Temasek subsidiary
- The capital will be deployed to scale offline retail, expand product categories, and strengthen team capabilities
- This round follows earlier funding of ₹7 crore from angel investors and Shark Tank India, where Namita Thapar and Ritesh Agarwal backed the brand

2. Retail Expansion: From 25 to 125 Stores
- Palmonas currently operates 25 stores across metro and tier-2 cities
- The brand plans to launch 100 new company-owned outlets over the next year
- Store distribution will include 60 percent in malls, 40 percent on high streets, and select locations at airports
- Key cities targeted for deeper penetration include Mumbai, Delhi, Bengaluru, Hyderabad, and Pune, with emerging markets like Aurangabad and Bhagalpur also in the mix

3. Product Innovation and Category Focus
- Palmonas is doubling down on nine-carat gold jewellery featuring lab-grown diamonds, a segment gaining traction amid rising gold prices and regulatory support for hallmarking
- The brand’s demi-fine positioning bridges the gap between fast fashion and traditional fine jewellery, offering waterproof, skin-safe designs suitable for daily wear
- With over 6.5 lakh orders delivered to date, Palmonas is now enhancing its top-selling categories and exploring new product lines to meet evolving consumer preferences

4. Brand Philosophy and Gen Z Appeal
- Co-founded by Shraddha Kapoor, Amol Patwari, and Pallavi Mohadikar, Palmonas is built on the ethos that jewellery should be effortless, personal, and part of everyday life
- Kapoor’s active involvement and social media presence have helped the brand resonate with younger audiences, especially Gen Z and millennials seeking accessible luxury
- The brand’s storytelling emphasizes individuality, sustainability, and emotional connection—values that align with the priorities of its target demographic

5. Financial Performance and Market Context
- Revenue grew from ₹3.83 crore in FY23 to ₹5.38 crore in FY24, though the company reported a net loss of ₹1.24 crore
- The funding comes amid a broader investor appetite for jewellery startups innovating with lab-grown diamonds and demi-fine offerings
- Competitors like Aukera, True Diamond, Amama, and Coluxe have also secured funding recently, while larger players such as GIVA and Lalithaa Jewellery Mart are tapping capital markets

6. Global Ambitions and Future Outlook
- Palmonas aims to make demi-fine jewellery a household name in India and expand its footprint globally
- The brand is enhancing its international shipping network and exploring cross-border opportunities
- With this funding, Palmonas is poised to become a category-defining player in the everyday luxury segment, blending design, accessibility, and sustainability

Sources: Economic Times Retail, YourStory, Hindustan Times