What the business is
Online retailer of lightweight, fashionable gold and diamond jewellery, delivering in India, the US, the UK, Europe and the UAE.
The bet
That Indian consumers would buy lightweight, fashion-led gold and diamond jewellery online, delivered direct across India and abroad.
Starting capital
More than $88M raised to date from Lightbox, Norwest Ventures, 100Unicorns and Value Quest; last priced at $120M in its 2021 round
How it started
Founded in 2016 by Saroja Yeramilli, selling lightweight and fashionable gold and diamond jewellery through its online platform.
What happened
FY22 sales grew 363.6% to INR 364.4 Cr, but losses surged 73% to INR 106.7 Cr; FY23 and FY24 financial statements were never filed. In June 2024 it reportedly raised a $1.1M bridge from existing investors at a tenth of its erstwhile valuation, and reports surfaced that salaries had stopped being paid.
What has to be true
FY22's 363.6% sales growth came with 73% higher losses — INR 106.7 crore — a burn rate that assumed fresh rounds would keep arriving.
The funding market turned: the June 2024 bridge priced at a tenth of the $120 million mark set in 2021, and the company never defended it.
Stopped salaries and unfiled FY23-FY24 financials signalled distress to buyers and employees at the same time.
Better-capitalised competitors — CaratLane under Titan, BlueStone heading toward an IPO — took the online jewellery market Melorra had helped create.
What can be applied
Growth bought with losses only works while funding lasts: 364% revenue growth meant nothing once the next round disappeared.
Aftermath
As of 11 October 2024, talks with Senco Gold were in due diligence at a reported INR 40-50 crore, with the valuation and deal size still open and completion conditioned on 'satisfactory completion of the process'. Melorra had reportedly held talks with multiple buyers in recent months.
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