Fine Fashion

Launched in 2022, Palmonas—positioned as India’s first demi-fine jewellery brand—aims to disrupt the jewellery market. In an exclusive interaction with The Retail Jeweller, Founder Pallavi Mohadikar talks about onboarding actor Shraddha Kapoor as a partner, plans to raise $3 million in a pre-series A funding round, opening 60 stores by next year, and why the brand plans to invest 40 per cent of its capital in marketing at this stage.

Pallavi Mohadikar and Dr Amol Patwari’s entrepreneurial journey has been marked by bold, strategic moves—from launching a successful digital sari start-up to establishing Palmonas, an affordable luxury demi-fine jewellery brand. Combining Pallavi’s sharp business acumen with Amol’s medical insights, they pinned down a market gap for premium yet affordable daily-wear jewellery. Having delivered over 1 lakh orders, the brand is building an engaged community of buyers who see immense value in alternative metals that look gold, have a superior, long-lasting finish, do not pinch the pocket, and satiate their style needs.

Tap here to know how the brand’s growth trajectory changed after onboarding celebrity co-founder Shraddha Kapoor.

EDITED EXCERPTS:

Pooja Mujumdar (P): A doctor and an engineer is a rare combination for founders of a jewellery start-up. What inspired Palmonas?

Pallavi Mohadikar (PM): After the success and acquisition of our first venture, the digital-first sari brand Karagiri, in 2021, we wanted to re-enter the B2C space. We identified a gap in the Indian market for demi-fine jewellery—pieces that look gold but are made of alternative metals with thick gold plating, catering to those who want affordable luxury. We piloted 30 designs, which sold out quickly, validating our idea.

“We use hypoallergenic metals like surgical-grade stainless steel and sterling silver. Unlike typical flash-plated jewellery with a thin 0.5-micron gold layer, our demi-fine jewellery has 2.5-micron thick 18k gold plating, giving it a superior, long-lasting finish”

– Pallavi Mohadikar, Founder, Palmonas

P: What different metals and unconventional finishes are you using to achieve the natural gold look?

PM: We use hypoallergenic metals like surgical-grade stainless steel and sterling silver. Unlike typical flash-plated jewellery with a thin 0.5-micron gold layer, our demi-fine jewellery has 2.5-micron thick 18k gold plating, giving it a superior, long-lasting finish. Most people do not experience fading or tarnishing. In particular, using sterling silver as a base metal with gold vermeil allows us to offer pieces like mangalsutras and engagement rings that hold cultural significance for customers wanting to wear these daily.

“Our primary target is millennials and late Gen Z—20 to 40 years old, mainly educated professionals and young mothers. Many have previously purchased from brands like CaratLane and Tanishq but now prefer the value of demi-fine jewellery for daily wear”

P: How are customers perceiving your demi-fine jewellery?

PM: Initially, we had to educate customers about demi-fine jewellery. Through videos and content marketing, we established demi-fine as a distinct category, but it took nearly two years for consumer awareness to grow. Our primary target is millennials and late Gen Z—20 to 40 years old, mainly educated professionals and young mothers. Many have previously purchased from brands like CaratLane and Tanishq but now prefer the value of demi-fine jewellery for daily wear. About 40 per cent of our orders are for gifting, and mangalsutras are among our best-sellers.

“First-time purchases average Rs. 2,500 to 2,900, while repeat purchases average over Rs. 5,000, indicating growing trust in our brand. We have even seen repeat orders as high as Rs. 46,000, with over 15 products in a single purchase”

P: Palmonas offers a lifetime exchange and buy-back policy rarely expected from the non-precious jewellery category. What is the idea behind this?

PM: This policy builds trust and demonstrates our product confidence. Despite delivering over 1 lakh orders, we have only had about 50 to 60 warranty claims. While the exchange policy has not been utilised yet, its existence positively impacts customer perception. This strategy, along with our reward programme, which allows customers to earn redeemable points, and exclusive benefits like early access to Friday drops and VIP events, has contributed to a 25 per cent repeat customer rate. First-time purchases average Rs. 2,500 to 2,900, while repeat purchases average over Rs. 5,000, indicating growing trust in our brand. We have even seen repeat orders as high as Rs. 46,000, with over 15 products in a single purchase.

P: What marketing strategies have worked for the brand?

PM: Our most effective strategy has been organic celebrity and influencer placements. We have achieved high-profile visibility without direct spending, such as actor Deepika Padukone wearing our jewellery in a Levi’s campaign. Celebrities like Alia Bhatt and Shraddha Kapoor (now also our brand’s co-founder) have been spotted wearing our pieces in their daily lives. This has positioned us as an affordable luxury brand, allowing customers to wear the same jewellery as their favourite celebrities.

P: You are planning to raise $3 million in a pre-series A funding round. How do you plan to utilise the funds?

PM: Our focus areas are strengthening our market presence and educating consumers about the value proposition of demi-fine jewellery compared to traditional gold jewellery for everyday use. We plan to invest over 40 per cent of the funds into marketing. The high marketing spend is necessary because we are not just promoting our brand, but educating consumers about how the new category of demi-fine jewellery compares with gold. This investment is crucial for establishing Palmonas as a leader in this new category and will drive substantial returns as we scale up both online and offline operations.

P: Tell us about your Friday Drop initiative.

PM: We release about 200 new styles every Friday as part of our ‘Friday Drop’ initiative. While all 200 styles are uploaded to our new arrivals section, we showcase only 10 to 15 pieces in a special presentation to avoid overwhelming customers. This strategy has been particularly effective with our repeat customers, who eagerly anticipate our latest offerings. Since implementing these drops, we have seen a significant spike in sales on Fridays and observed a notable increase in the contribution of new arrivals to our overall revenue.

P: While your products are distinct, who do you consider its key competitor?

PM: Our closest competitor is GIVA, which is not strictly demi-fine. Our focus on the affordable luxury segment sets us apart, offering a premium brand experience and modern, international designs compared to others.

P: You are targeting the youth who increasingly prefer brands with sustainable values. How is Palmonas addressing this new consideration?

PM: Palmonas prioritises sustainability by using 100 per cent sustainably procured base metals, with over half of our production volumes coming from reused and recycled metals. These metals are sanitised by our suppliers, who adhere to strict quality checks, including our additional inspections before production. We also ensure ethical work practices and worker-friendly environments in our office and factory. Our packaging is paper-based to reduce our carbon footprint, and we plan to shift to 100 per cent sustainable packaging materials. However, we have not effectively communicated these practices to our customers. Moving forward, we plan to actively highlight our sustainability efforts on our website, app, and packaging to appeal to environmentally conscious consumers.

P: What are your long-term vision and expansion plans for Palmonas?

PM: We believe the demi-fine jewellery category will transform how India buys daily wear jewellery, and Palmonas aims to lead this disruption. To achieve this, we are aggressively expanding our presence through digital and offline channels. Our focus areas are strengthening our online channel, our largest revenue stream, and supporting aggressive offline expansion as we aim to open 40 to 60 stores this financial year. While we started as a digital brand, we have now initiated an offline expansion by opening two stores in prime Pune locations. We have also launched a franchise model in collaboration with Francorp, the global arm of franchising company Franchise India Holdings, and plan to open 25 franchisee stores across major Indian cities like Bengaluru and Hyderabad within the next year.

Written by Pooja Mujumdar