Mumbai-based D2C beauty brand SUGAR Cosmetics is set to raise ₹38 crore ($4.5 million) from existing investors, including Anicut Equity Continuum Fund, Elevation Capital, Malabar Investment, and L Catterton, according to recent regulatory filings.
The funding round, estimated to value the company at ₹2,600–₹2,700 crore ($320 million), aligns with the valuation from its previous $50 million funding round in 2022.
Focus on Scaling Quench Botanics and SUGAR POP
The new capital infusion will primarily fuel the growth of Quench Botanics, a Korean skincare line launched by SUGAR last year in collaboration with Kareena Kapoor. The brand has gained significant traction across e-commerce platforms and quick commerce channels over the past six months.
Co-founder and COO Kaushik Mukherjee stated, “Investments in FY25 are focused on scaling Quench Botanics, which has shown strong momentum. Additionally, capital has been allocated to expand the distribution of our affordable cosmetics range under the SUGAR POP sub-brand.”
Strengthening Distribution and Expanding Reach
SUGAR has also earmarked funds to enhance its distribution network for both Quench Botanics and SUGAR POP. The brand already boasts a presence in over 45,000 retail stores across India, transitioning from its origins as an online-only platform to an omnichannel model.
Financial Highlights
In FY24, SUGAR Cosmetics recorded ₹505.1 crore in operating revenue, a 20% growth from ₹420 crore in FY23. The company also narrowed its losses by 11% to ₹67.6 crore, reflecting a stronger focus on improving profitability.
Investor Activity and Future Plans
Malabar Investments previously acquired an ₹80 crore stake in SUGAR in 2023 from early backers such as India Quotient and RB Investments. Sources suggest that additional secondary transactions could take place in the coming year, offering exits to some of the company’s early investors.
Competitive Landscape
Founded in 2015 by Vineeta Singh and Kaushik Mukherjee, SUGAR has positioned itself as a leading player in India’s beauty and personal care market. Competing with brands like Mamaearth, Nykaa, and global giants like Maybelline and L’Oréal, SUGAR has raised approximately $90 million in total funding to date.
With a growing portfolio, expanding distribution, and a focus on profitability, SUGAR Cosmetics aims to solidify its position in the fast-evolving beauty industry.
