Palmonas is set to raise approximately ₹200 crore ($22 million) in its Series B funding round. The funding of Series B will be organized in such a way that it will give Palmonas a significant amount of capital and indicate its swift expansion in the market. XPONENTIA Capital will be the first to invest with a contribution of ₹179 crore (approximately $20million), followed by an extra contribution of ₹21 crore by Vertex Ventures.

Capital injection and valuation surge

As per reports that were submitted by the Registrar of Companies (RoC), the board will be issuing 815 Series B Completely Convertible Preference Shares (CCPS) for 13,59,434 per share to raise the first tranche of 110 crore, and the remaining ₹90 crore will be raised in subsequent filings.

This fundraise is characterized by the most significant event, which is a massive rise in the valuation of the company. The post-money valuation of Palmonas is estimated at around ₹1,950 crore, a 3.8X increase on the previously estimated valuation of over ₹500 crore.

Upon the completion of this round, XPONENTIA Capital will own 10.68% of the company and 14.25% of Vertex Ventures. Approximately 65% of them will fall in the hands of the founding team that will include Pallavi Mohadikar, Amol Patwari and the Bollywood actress Shraddha Kapoor.

Financial performance and competitive landscape

Palmonas was founded in 2022 by Amol Patwari and Pallavi Mohadikar. Palmonas has rapidly established a presence in the demi-fine Jewellery market. It focuses on high-end accessories, such as necklaces, rings, bracelets and mangalsutras, made of surgical-grade stainless steel with 18k gold vermeil covering. 

Shraddha Kapoor joined the startup as a co-founder in March 2024. This celebrity endorsement, along with emphasis on low-end but high-end appearance jewellery, has seen Palmonas attract a great number of contemporary Indian consumers seeking an alternative to traditional gold jewellery.

The premium of valuation is backed by the excellent financial performance of the company in the last financial year. In the past quarter, ending March 2025, Palmonas reported an unusual growth in its operational revenue that has sharply increased more than 40 times to ₹39 crore, as opposed to ₹97 lakh in the prior fiscal year.

The startup has managed to become profitable as it has registered a profit of ₹4.3 crore in the same period. This hyper-growth and early profitability is a unicorn in the D2C startup ecosystem and probably led to the sheer popularity with investors.

Palmonas is in a more competitive industry. It is competing with larger and established players in the field, such as GIVA, which is in the process of raising more capital, and BlueStone, which switched to a public company last year. Lab-grown diamond brand Firefly Diamonds, Limelight, and fashion jewellery competitors Jewelbox and COLUXE are other competitors in the space.

Conclusion

The 4X valuation premium Series B round indicates the increasing investor confidence in the demi-fine jewellery field and the business model of Palmonas. Through the integration of celebrity partnerships, scaling of revenues at high speed, and a shift to profitability, Palmonas has established itself as one of the leaders in the Indian D2C arena. This new capital will probably be used to increase its products and market share further as it goes on to compete with the old-fashioned jewellery brands.