The Future Is Now: Kashyap Meta Of Liquid Diamonds On How Their Technological Innovations Will Shake Up The Tech Scene
Validate your idea by engaging with potential customers before building your product. Reading “The Mom Test” book is highly recommended. We learned the hard way that insufficient understanding of customer pain points can lead to overengineering the product.
As a part of our series about cutting-edge technological breakthroughs, I had the pleasure of interviewing Kashyap Mehta.
As the CEO of Liquid Diamonds, Kashyap Mehta has built the first global B2B online exchange for diamonds.
Kashyap began his career in the gaming industry at Hypnotix, which was acquired by Electronic Arts. He brought his experience in creating scalable, high-performance systems with a focus on user experience to his first startup, Diamond Technology Solutions. There, he built a team that developed software for the jewelry industry, serving over 150 clients across 14 countries. Outside of work, Kashyap is a daily Vipassana meditation practitioner and enjoys wildlife photography.
Thank you so much for doing this with us! Before we dive in, our readers would love to learn a bit about you. Can you tell us a story about what brought you to this specific career path?
My family has been in the diamond business for generations. My father was the chairman of the apex trade body. Dinner table conversations while I was growing up ingrained in me a deep understanding of the diamond industry. Despite its size, the diamond industry has been slow to embrace change.
With Liquid Diamonds, we’re aiming to introduce price transparency and liquidity to help the industry realize its true potential by attracting financial capital. This would enable diamond buyers to purchase quickly and easily at fair market value, while suppliers could liquidate their inventory instantly.
Can you share the most interesting story that happened to you since you began your career?
In 2013, I met Mark Molloy, a brilliant 60-year-old with 13 patents across 5 different subject areas, including one for trading heterogeneous products like diamonds the way stocks and commodities are traded. Inspired by his vision, we decided to build a platform akin to Nasdaq for diamonds. My team member, Chetan Gupta, led the development, with Mark as the chief architect. In 2017, we spun off the platform into Liquid Diamonds.
Sadly, Mark passed away in 2020 after battling leukemia, but we continue to honor his legacy and vision.
Can you tell us about the cutting-edge technological breakthroughs that you are working on? How do you think that will help people?
Our platform is powered by a patented universal continuous double auction technology, bringing price transparency and liquidity to diamonds for the first time. This allows buyers to secure the best prices and helps suppliers quickly and easily liquidate their inventory.
Increased transparency boosts consumer confidence and attracts significant financial capital, benefiting the entire supply chain from African miners to Indian manufacturers to US jewelers.
How do you think this might change the world?
Current market inefficiencies and a walled community of trust limit buyer-supplier interactions and hinder price discovery and liquidity. Our goal is to modernize the diamond industry, making it as efficient as sectors like auto, finance, and pharmaceuticals. By enhancing transparency and liquidity, we aim to attract substantial financial capital and restoring consumer trust in a traditionally opaque industry.
Keeping “Black Mirror” in mind, can you see any potential drawbacks of this technology that people should think more deeply about?
One major concern with AI is the fear that it may take away jobs. However, we view AI as a co-pilot that enhances human intuition and creativity.
Traditionally, diamond pricing is done manually by comparing against competitors on classified listing websites. Our Pricing Co-Pilot aggregates this data and constantly monitors market changes, helping wholesalers price their diamonds competitively. This allows humans to focus on complex decision-making while AI handles data aggregation and analysis.
Was there a “tipping point” that led you to this breakthrough? Can you tell us that story?
Our journey wasn’t easy. We initially overestimated our understanding of the market and overengineered our product, facing resistance from the traditional diamond and jewelry traders.
However, we discovered that our platform’s ability to constantly monitor smaller suppliers offering the best deals was a key differentiator. This feature facilitated over $50M in transactions, mainly between New York wholesalers and Indian manufacturers. Our Pricing Co-Pilot is now gaining traction among wholesalers seeking to optimize their inventory turnover.
What do you need to lead this technology to widespread adoption?
While we’ve gained traction with New York wholesalers, our goal is to expand our customer base to include more wholesalers and evolve our product to address the unique needs of US jewelry retailers. Our focus is on delivering value to every customer. Once we reach a critical mass — estimated at $250M annually — network effects fully kick in, drawing more buyers and suppliers.
What have you been doing to publicize this idea? Have you been using any innovative marketing strategies?
Our most effective marketing has been word-of-mouth within the closely knit diamond trading community. Satisfied customers provide warm introductions to potential clients, leveraging personal relationships to build trust and expand our network.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?
I’m particularly grateful to my co-founder, Chetan Gupta. His dedication and technical expertise have been instrumental in developing our platform. Chetan first joined my previous company, Diamond Technology Solutions, as a lead developer. When we spun off Liquid Diamonds, he took on the role of co-founder with his impact being especially profound after Mark passed away. Chetan seamlessly stepped up as CTO, continuing to drive innovation and technical excellence. His calm under pressure and unwavering commitment have made him my constant sounding board for all major decisions.
How have you used your success to bring goodness to the world?
We are working to democratize the diamond industry, addressing significant challenges faced by small and medium businesses. These businesses often suffer due to a lack of economies of scale.
For instance, mom-and-pop jewelers in the US struggle to access the volume discounts available to large wholesale buyers, putting them at a competitive disadvantage. Similarly, smaller diamond cutters and polishers in India typically lack access to global markets, limiting their growth and opportunities. Our platform levels the playing field by ensuring fair market value for buyers and providing quick liquidity for suppliers, whether they deal with 5 or 500 diamonds. By addressing these issues, we help small businesses thrive in a competitive market, fostering a more equitable and accessible diamond industry.
What are your “5 Things I Wish Someone Told Me Before I Started” and why?
a. Validate your idea by engaging with potential customers before building your product. Reading “The Mom Test” book is highly recommended. We learned the hard way that insufficient understanding of customer pain points can lead to overengineering the product.
b. Think big but start small, concentrating all energy on one product within one segment. We initially assumed that sourcing processes in all diamond and jewelry businesses are similar. However, each segment has different pain points, so it’s crucial to focus on a small segment initially. If it doesn’t work, be prepared to pivot to a different product or target audience.
c. Recognize that being a founder is immensely challenging. The journey will be longer and tougher than anticipated. Find ways to center yourself amidst the ups and downs. Meditation helps me, but find what works for you, whether it’s sports, gardening, or therapy.
d. Avoid going solo as a founder. Having a co-founder is invaluable for support throughout the journey. Ensure your co-founder is exceptional, as they will be your primary support system and confidante.
e. Don’t fall into the trap of believing that a good product sells itself. Effective marketing and continuous communication with customers are essential. Develop a clear narrative and messaging, repeating it consistently across all channels to ensure maximum impact.
If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be?
I would promote the practice of meditation in both personal and professional settings. It has been transformative for me, bringing clarity and enabling me to focus, confront fears, and cultivate compassion for others’ needs.
At our workplace, we have done meditation classes to foster mental well-being. Additionally, I support organizations that provide meditation programs for prisoners during their incarceration. I firmly believe in offering everyone a second chance, regardless of past mistakes, and meditation can be a powerful tool for personal transformation and societal healing.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
“This too shall pass.” This concept of impermanence, embraced by various philosophers and thinkers, has been crucial during the ups and downs of my startup journey. It helps me stay grounded, appreciate good times, and not dwell on fears or mistakes.
Some very well-known VCs read this column. If you had 60 seconds to make a pitch to a VC, what would you say?
Liquid Diamonds is a B2B online exchange for certified diamonds; think Nasdaq for diamonds.
Using our patented double auction technology, we are bringing price discovery and liquidity to diamonds for the first time. Our platform not only helps build consumer trust in an opaque industry but also gives financial markets access to a large sector. This will revolutionize the entire supply-chain of the industry by enabling diamond and jewelry businesses to buy quickly and easily at fair market value and suppliers to liquidate their inventory instantly. Join us in reshaping the diamond industry and unlocking its full potential.
How can our readers follow you on social media?
You can follow me on LinkedIn:
https://www.linkedin.com/in/kashyapmehta/
Thank you so much for joining us. This was very inspirational.
