The Indian direct-to consumer (D2C) jewellery segment, with over 550 startups, has garnered $103 million in funding this year to date, according to a report on Thursday.

In 2023, the D2C jewellery segment in India raised a total of $104 million, marking a 57 per cent increase from $66.3 million secured in 2022, as per the report by market intelligence platform Tracxn.

The third quarter (Q3) marked the highest-funded quarter in the segment’s history in the country, bringing in $71.5 million.

Bengaluru, Chennai and Mumbai are the top cities for D2C jewellery funding, with Bengaluru contributing over 77 per cent of the total, the report mentioned.

On a global scale, India has taken the lead in terms of funding share within the D2C jewellery sector, surpassing the US and Finland, accounting for over 40 per cent of total funding.

“With the sector continuing to grow and mature, brands that can adapt to changing demands, focus on sustainability, and leverage digital platforms are poised to lead the next phase of growth. This is truly an exciting era of reinvention for the jewellery market, both in India and globally,” said Neha Singh, Co-Founder of Tracxn.

The surge in investment is being driven by evolving consumer preferences for personalised, convenient shopping experiences, alongside technological advancements such as virtual try-on tools and AI-powered personalisation.

The industry's focus on sustainability and customisation has further fuelled its expansion, attracting both investors and consumers alike.

Key players such as BlueStone, which offers subscription-based precious jewellery, raised a total of $193 million over the past two years through five consecutive funding rounds. Ultrahuman, a provider of smart health rings, secured $39.6 million across three consecutive rounds in the same period, said the report.

Saama Capital, Accel, and Kalaari Capital are the leading investors in this space.