1Mby1M Virtual Accelerator AI Investor Forum: Vinit Bhansali, Takshil Venture Partners (Part 3)

Sramana Mitra: This is interesting. I’ve tracked a company that pioneered selling diamonds online—Blue Nile. You must be familiar with them. The entrepreneur came from the diamond industry; his family had roots there. He had a key insight: in the U.S., diamonds are primarily purchased by men for engagement rings.

The purchase is not driven by the glamor of Tiffany’s, but more by value—cut, clarity, etc. So, he created a retail experience based on information, appealing to a buyer who wanted to learn before making a major purchase. It was a contrarian idea; no one believed diamonds could be sold online. A close friend of mine invested early, and it worked. This was in 1999, when e-commerce was still immature.

Now your company is entering the business much later, with a different level of awareness. What’s interesting is the positioning—who is buying lab-grown diamonds? If affordability is the primary value proposition, it must be people who really care about affordability. What thesis did you discover? The business is working now, and you’re validating that thesis—what are you learning?

Vinit Bhansali: You’re right. There has to be a new buyer persona for a new business. When analyzing this startup, we looked at global trends. Last year, over 50% of engagement rings in the U.S. were lab-grown diamonds. Even if the exact number is off, the shift is clear.

America tends to be a leading indicator. If it’s happening there, other countries may follow. But in India, diamonds haven’t been mass-market because of cost. Gold is culturally and economically preferred—it’s seen as a store of value and savings. Diamonds aren’t. They’re considered luxury, not generational assets.

What’s changing is aspiration. India’s middle class now aspires to buy diamonds more frequently. We found that a large percentage of customers from this startup are buying the first diamond in their family’s history. That’s a powerful aspiration. Many say things like, “I couldn’t buy a diamond for my wedding, but I can now buy one for my child’s.”

Sramana Mitra: That’s interesting. This business targets a less affluent customer base than the typical luxury buyer. It’s tapping into segments that haven’t been the focus for Indian e-commerce or tech companies. I like that—these markets need compelling value propositions. They have some purchasing power, but the economics are different. These are typically lower-margin businesses, right?

Vinit Bhansali: Surprisingly, this is a high-margin business. I can’t disclose financials, but the margins are good. This ties into what I said about great founders. These founders had a thesis, tested it, and validated it. Before that, even I wouldn’t have assumed this market exists today. Maybe five years from now, yes—but not today.

Sramana Mitra: The diamond market exists. We did CaratLane’s story a long time ago. But lab-grown diamonds have a different positioning than luxury diamonds. So, they came to you with a validated thesis?

Vinit Bhansali: Yes, they had set up a demo store to validate their thesis. That wasn’t a prerequisite for funding, but it definitely helped.

Sramana Mitra: Where was the first store?

Vinit Bhansali: In the founder’s hometown—Calcutta.

Sramana Mitra: What’s the name of the company?

Vinit Bhansali: Jewelbox.

Sramana Mitra: If they hit $5 million in revenue, I’d love to do the story. We do detailed, high-profile journey stories and case studies.

Vinit Bhansali: Happy to connect you with the founders. It’s a brother-sister duo—very smart and humble, which is a rare but powerful combination.

Sramana Mitra: Very good. Now about the carbon credit trading company?

Vinit Bhansali: We’ve invested in a couple in that space. One is a personal favorite—the one working with farmers.

Sramana Mitra: Tell me more about that. What was the situation when you discovered them? How much validation did they have before you wrote the check?

Vinit Bhansali: They had no revenue when we started talking. They had early conversations and were signing some contracts. But to scale, they needed funding—for upfront investments in training farmers and promoting green inputs like eco-friendly pesticides and fertilizers.

These inputs cost more, so convincing farmers was hard. The value only becomes clear at the end of the production cycle, when carbon credits are generated, and farmers earn more. There was a lot of hesitation because of the delayed return.

This segment is part 3 in the series : 1Mby1M Virtual Accelerator AI Investor Forum: Vinit Bhansali, Takshil Venture Partners
1 2 3 4 5