Blockchain startup Everledger is providing its diamond traceability solution to Rare Carat, a U.S. based online marketplace that facilitates $200 million in annual sales. The purpose isn’t just to prove the diamond matches its certificate and its ownership but also that it was sustainably sourced in a conflict-free manner.
“Both retailers and customers directly benefit from having a permanent digital record of a diamond’s origin, characteristics and ownership, and this is particularly relevant to younger generations that the diamond industry is keen to attract, who put more weight into understanding the sustainability and ethics of a desirable item,” said Scott Austin, Everledger’s SVP for the Americas.
“Diamonds may be transparent, but the diamond supply chain isn’t always as transparent as it could be,” said Apeksha Kothari, COO at Rare Carat. “Consumers will get access to provenance reports and be able to reliably track the diamond through the blockchain. At Rare Carat, our mission is to help customers buy their diamonds with confidence. And part of this is providing customers with trust on ethical sourcing.”
While Everledger has expanded its portfolio beyond diamonds to fine wine, spirits, luxury items, and the circular economy, it has some major partners in the diamond sector. These include giant Chinese online retailer JD.com and Hong Kong’s leading jewelry chain, Chow Tai Fook. Plus, it has a high profile relationship with Alrosa, the second-largest diamond producer in the world.
The company raised a $20 million Series A funding round in September 2019 led by China’s Tencent and another $7 million in July 2020 from Tencent and the U.K. Government’s Future Fund.
