In November 2024, news broke that Sugar Cosmetics, the Mumbai beauty brand started by Vineeta Singh and Kaushik Mukherjee, was raising about ₹38 crore (about $4.5 million) from existing investors. At the time, the round was described as flat, meaning the company’s value had not gone up since its last big round. Two years later, the picture has changed. This guide explains what was reported in 2024, what the later numbers show, and what founders can learn.
The short version
- November 2024: about ₹38 crore from existing investors, reported at a valuation of roughly ₹2,600 to ₹2,700 crore, similar to the 2022 round.
- FY24 numbers: operating revenue of about ₹505 crore, up around 20%, and a loss of about ₹68 crore.
- FY25 numbers (reported): revenue fell by roughly 18% to 20%, to about ₹404 to ₹415 crore, and losses grew. Sources differ on exact figures.
- 2026: a round of about ₹144 crore from A91 Partners at a valuation reported at around ₹755 crore. See our report on that round.
What the 2024 round was meant for
The 2024 money was meant mainly to grow Quench Botanics, a Korean-style skincare line that Sugar launched in 2023 with actor Kareena Kapoor Khan, and to spread the cheaper SUGAR POP range in more shops. Co-founder and COO Kaushik Mukherjee said that spending in FY25 would focus on scaling Quench Botanics, which was gaining ground on online stores and quick-commerce apps. Sugar also said it was in over 45,000 shops, moving from an online-first brand to selling both online and in stores.
Who put in the money
The 2024 round came from investors that already held shares: Anicut Equity Continuum Fund, Elevation Capital, Malabar Investments and L Catterton. Malabar had bought an ₹80 crore stake from earlier backers India Quotient and RB Investments in 2023, and reports said more such share sales between investors were possible. Sugar has raised more than $100 million across rounds.
What changed after 2024
Later reports, based on filings, said Sugar’s revenue fell in FY25 from about ₹505 crore to roughly ₹404 to ₹415 crore, depending on the source and the measure used, while losses widened. In 2025, the company also raised a smaller round with debt. In 2026, A91 Partners, an existing investor, put in about ₹144 crore, and data platforms reported a valuation far below the 2022 level. Sugar has not publicly confirmed every figure.
Why would an investor pay a lower price?
An existing investor who believes in a company can get a bigger share for the same money when the price is lower, and the company gets cash to continue. It also tells the market that at least one backer who has seen the accounts still supports the brand. But it can be hard on founders and early employees, as their shares become worth less on paper.
Competition
Sugar competes with Mamaearth, Nykaa’s own brands and global names such as Maybelline and L’Oréal. Many beauty brands that raised money at high prices in 2021 have since had to adjust, as investors now ask for a clear route to profit rather than only fast growth.
Lessons for founders
- A “flat” round can be an early sign that growth is slowing. Watch revenue and loss together, not funding headlines.
- Selling in many shops needs cash for stock and staff. Plan how long your money lasts.
- Know your key terms: valuation, dilution and burn. Our startup glossary explains them simply.
Questions to think about
- Is a lower valuation always bad news, or can it be a healthy reset for a brand?
- Do online-first brands lose their edge when they move into thousands of physical shops?
- What would you look at first when judging a beauty brand: sales growth, profit or customer loyalty?
Related reading
- Sugar Cosmetics raises ₹144 crore from A91 Partners at a much lower valuation
- Startup funding this week: Indian startups raise $123 million
- Shark Tank India Season 5: the big deals and valuations
Sources
- Inc42: Sugar Cosmetics raises ₹145 crore from A91 at a near 80% valuation cut
- exchange4media: Sugar Cosmetics revenue slide deepens as losses mount
- Storyboard18: Sugar Cosmetics FY25 revenue declines to ₹415 crore
This article is for general information. Figures come from news reports and filings and differ slightly between outlets. It is not investment advice.
