The Diamond Store seeks investors as lab-grown demand rises

The Diamond Store, the UK’s largest specialist online diamond jewellery retailer, is reportedly exploring a stake sale to external investors for the first time in its 69-year history, according to Sky News.

The outlet has learnt that the London-based business, owned by its founding family, has appointed Cavendish to run the process and is understood to be in talks with a number of potential backers. 

The move comes as demand for lab-grown diamonds continues to climb, with Bain and Company reporting a 40% increase in global sales in 2022.

The Diamond Store, which employs around 70 people, is reporting double-digit revenue growth, with EBITDA projected to double within three years with the support of a new investor, according to Kanzen.

The talks come two years after rival jeweller Vashi collapsed, leaving investors with heavy losses and facing allegations of misconduct.

Jeremy Kanzen, CEO and co founder of The Diamond Store, told Retail Sector: “At The Diamond Store, we’ve seen a marked rise in demand for lab-grown diamonds, reflecting a broader shift in how today’s customers engage with fine jewellery. People are increasingly looking for beautiful, meaningful pieces that align with their values, particularly around sustainability and value for money.

“We offer both natural and lab-grown diamonds, and importantly, we don’t push customers in one direction or the other. Instead, we focus on education and transparency, empowering each customer to make the choice that’s right for them. Our role is to support and inform, whether that’s helping someone choose a traditional mined diamond with timeless appeal, or introducing them to a lab-grown alternative that offers the same sparkle and durability at a more accessible price point.”

He added: “That said, there’s no denying the compelling value proposition of lab-grown diamonds. When you combine that with a lighter environmental footprint and no compromise on quality, it’s clear why many customers are choosing this option, especially for milestone purchases.

“This shift in consumer behaviour aligns with our wider strategic ambitions. We’re currently seeking to partner with strategic investors who share our vision and can help us take our brand, reputation and strong foundation of British heritage and craftsmanship into key international markets. Our story is rooted in quality, trust and innovation, and we’re proud of our journey from a UK-born brand to a global name in accessible luxury. We believe the next chapter is about growth, and lab-grown diamonds are just one part of a much bigger picture.”