Yesterday, according to inc24, SUGAR Cosmetics, a Mumbai-based D2C beauty brand, is set to raise INR 38 Cr (approximately $4.5 Mn) from existing investors, including L Catterton. According to regulatory filings, the fresh funding values the startup at INR 2,600–2,700 Cr, consistent with its $50 Mn funding round valuation in 2022.
Commenting on the investment, SUGAR’s cofounder and COO Kaushik Mukherjee confirmed that these investors are existing shareholders and noted that the capital would be infused at different intervals. In 2022, L Catterton has invested in SUGAR Cosmetics leading the $50 million funding round.
Sources indicate that a secondary transaction could take place next year, offering exits to more of the startup’s early backers.
The capital will primarily be used to scale Quench Botanics, a Korean skincare brand launched last year in collaboration with Bollywood actress Kareena Kapoor, which has shown strong growth in quick commerce and e-commerce. Additionally, investments will support the distribution of SUGAR’s affordable color cosmetics line, SUGAR POP, and strengthen its omnichannel retail network.
In FY24, SUGAR reported an operating revenue of INR 505.1 Cr, a 20% growth from the previous fiscal year. It also narrowed its losses by 11% to INR 67.6 Cr, signaling an increased focus on profitability. Founded in 2015 by Vineeta Singh and Kaushik Mukherjee, SUGAR has grown from an online-only platform to an omnichannel brand with a presence in over 45,000 retail stores across India. To date, the startup has raised approximately $90 Mn in funding.
