Palmonas is taking a familiar consumer-business problem in a different direction.

After building its brand through digital channels, the demi-fine jewellery company is aggressively expanding its physical retail network.

The company currently operates around 105 stores and plans to reach approximately 160 by the end of FY27, according to co-founder Pallavi Mohadikar.

The strategy reflects a broader shift among Indian consumer startups.

Digital acquisition can create rapid initial growth. However, physical stores can improve customer trust, discovery and repeat purchasing.

Why Palmonas Is Moving Offline

Jewellery is particularly suited to physical retail.

Customers often want to see a product, evaluate its finish and understand its size before purchasing.

That makes physical stores more than simple distribution points.

They can function as brand-building and customer-acquisition channels.

Palmonas says repeat purchase rates are significantly higher among its offline customers.

The company reported a repeat rate of around 46% in physical stores compared with 32% online.

Average order values are also higher in stores.

Therefore, Palmonas sees retail expansion as a way to improve the economics of customer acquisition.

The Economics of Repeat Customers

The company’s strategy is particularly relevant as digital advertising becomes more expensive.

Consumer startups often spend heavily on performance marketing to acquire first-time customers.

However, those costs can reduce profitability if customers do not return.

Physical stores create another acquisition mechanism.

A customer may discover the brand through a mall or high-street location and subsequently purchase online.

Conversely, an existing digital customer may become more loyal after visiting a physical outlet.

This creates an online-offline feedback loop.

Palmonas is attempting to build exactly that system.

From D2C Brand to Retail Network

Founded in 2021, Palmonas began as a digital-first jewellery business.

Pallavi Mohadikar and Amol Patwari founded the company, while actor Shraddha Kapoor joined as a co-founder in 2024.

The business has since raised approximately $47 million from investors including Xponentia Capital and Vertex Growth Fund.

The company is valued at more than $200 million, according to ETtech.

Its FY26 revenue reportedly increased more than fivefold to ₹230 crore from ₹39 crore in FY25.

The company also reported a net profit of ₹11 crore in FY26.

That profitability changes the strategic equation.

Palmonas is not simply trying to buy growth at any cost.

It is trying to build a retail footprint while reducing marketing costs as a percentage of revenue.

Jewellery Is Becoming More Brand-Driven

India’s jewellery market has historically been dominated by established players with extensive physical networks.

Digital-native companies have introduced a different proposition.

They use social media, celebrity partnerships, influencer marketing and modern branding to target younger consumers.

However, as more brands enter the category, differentiation becomes harder.

Physical retail can therefore become a defensive asset.

A larger store network increases visibility and can create direct relationships with customers.

Yet it also introduces fixed costs.

Rent, employees, inventory and store-level operations can quickly increase the financial burden.

The Next Test Is Store Productivity

The important metric will therefore not simply be store count.

Palmonas will need to demonstrate that its new outlets generate enough revenue and repeat business to justify their costs.

That makes the planned expansion from 105 to 160 stores an important operational test.

If physical stores continue generating stronger repeat rates and higher order values, the strategy could reinforce the company’s wider omnichannel model.

If productivity falls as the network expands, however, the economics could become more difficult.

For Indian consumer entrepreneurs, Palmonas illustrates a broader lesson.

The D2C model does not necessarily end with digital commerce.

For categories where trust, physical experience and repeat purchases matter, the next stage of growth may involve combining digital distribution with carefully selected physical locations.

Tags: Palmonas, Pallavi Mohadikar, Entrepreneurship, Jewellery Startup, D2C India, Retail, Consumer Brands

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