Interesting funding alert- A jewellery startup announced a funding of USD 10 million
Jewellery is a woman’s best friend! The jewellery industry comes under the fashion industry as with clothes/ apparel, jewellery is considered to be the accessory.
Let us talk about the jewellery industry. It is a highly fragmented sector of most of the developed economies of the world. The jewellery industry is involved in the making, distribution, and repair of jewellery like watches, rings, necklaces, and many others. This industry is highly dependent on the fashion industry, as any change in fashion trends will for sure bring a change in the jewellery trends even.
There is division in the jewellery industry on the basis of the products handled. There are precious metals and precious stones. Then there is fashion jewellery and bridal jewellery. A single business can always handle more than one category of jewellery.
Now coming to the jewellery industry of the country, it is one of the largest in the world. The Indian gems and jewellery export sector of India has contributed to around 27% of the jewellery consumption around the world in the year 2019.
The market size of the gems and jewellery sector of the world is expected to increase to USD 103.06 billion between the years 2019 and 2023. The exports of the gems and jewellery of India is predicted to reach USD 100 billion by the end of the year 2025. India in the year 2020 was at the top position in the world in the exports of diamonds, with a share of 20.6%.
The Government of India aims that the jewellery export of the country will reach USD 70 billion by the year 2025, and in the year 2020, the export of the jewellery of India was at USD 35 billion. In September 2021, the exports of gems and jewellery were worth USD 18.98 billion, as compared to September 2020, when it was USD 8.01 billion.
Our country is the largest producer of silver jewellery in the world, followed by Thailand and then the United States, where around 35% of the total production is in the hands of our country. Till the year 2013, China was the largest producer. India is also the largest consumer of silver in the world, followed by the United States and then China.
The figures of the jewellery are calculated on the basis of the fine weight of the silver. In India, the markup value on traditional jewellery is between 10-15% and even in high-fashion retailers, the markup value rarely goes more than 40%. But in western countries, the markup value on the jewellery is generally around 1000%, which means the selling price of jewellery is 10 times the value of the silver it has.
Talking about any other funding of a jewellery startup that has taken place in the past, Melorra, a D2C jewellery startup had announced its funding of USD 24 million. That round of funding was led by 9Unicorns, Symphony Holdings, Value Quest, Param Capital, and many family offices.
Let us now talk about the funding of a jewellery startup that has taken place recently.
Announcement of funding of a jewellery startup
The startup, GIVA, has raised funds worth USD 10 million, as announced on January 20, 2022. This round of funding that has taken place was the Series A round of funding and was led by Sixth Sense Ventures. The other participants of this round of funding were A91 Partners, India Quotient, Grand Anicut Angel Fund, and Founder’s Bank Capital.
The startup plans to use the funds raised in the product development domain. The startup also has plans to build a mobile application in order to expand its digital presence. The startup also plans to partner with the top retailers in order to drive and push its offline business. The startup also has an aim to use its market position in order to come out to an audience that is spread around the world.
About the jewellery startup that has announced its funding
The jewellery startup, GIVA, was founded in the year 2019 by Ishendra Agarwal, Nikita Prasad, and Sachin Shetty, and is headquartered in Bengaluru. The startup is engaged in offering a wide range of silver, 18K gold, rose gold and oxidised silver jewellery.
The startup is in competition with Melorra, Pipa. Bella, which is owned by Nykaa, JewelMaze, and many others. The startup, GIVA has an aim to reach the growth phase and achieve the revenue of INR 200 crore for the financial year 2022.
What has been said about the deal of funding of the jewellery startup?
Nikhil Vora, who is the founder and CEO of Sixth Sense Ventures, made a statement that said that the investment company was hesitant in making an investment in the jewellery startup because of the low purchase frequency, limited pricing, and challenges to build a brand. He further said that the startup GIVA has been successful with the right mix of channel and customer engagement. He then said that the startup has an online as well as an offline presence, so according to him, it is the perfect time to come into partnership with the startup.
The startup is bringing a change in the jewellery and gems market, a domain considered very important in Indian society. We wish the startup a stroke of good luck and hope it has a shiny future just like its jewels and stones.
Edited and published by Ashlyn
