Exclusive: SUGAR Cosmetics Nets $5 Mn In Funding

Exclusive: SUGAR Cosmetics Mops Up $5 Mn From Anicut Capital, Others

SUMMARY

SUGAR Cosmetics has raised INR 40.99 Cr from existing investors including Anicut Capital, Stride Ventures and L Catterton

Anicut has infused INR 24.99 Cr, while L Catterton pumped in INR 1 Cr. The startup has also raised INR 15 Cr in debt from Stride Ventures

Beauty and personal care D2C brand Sugar Cosmetics has raised INR 40.99 Cr (around $5 Mn) in a mix of debt and equity funding led by existing investor Anicut Capital.

The round also saw participation from existing backers, including Stride Ventures and L Catterton.

According to SUGAR’s January 30 MCA filing assessed by Inc42, Anicut infused INR 24.99 Cr and received 3,839 compulsory convertible preference shares (CCPS) at a face value of INR 2 and premium of INR 65,113 on a private placement basis. Besides, a separate filing dated December 26, 2024, stated that L Catterton pumped in INR 1 Cr receiving an allotment of 154 CCPS.

Additionally, the Mumbai-based startup has also raised INR 15 Cr in debt from Stride Ventures for working capital purposes.

Inc42’s email queries to SUGAR Cosmetics did not elicit any response till the time of publishing the article.

The startup’s latest funding round comes nearly seven months after it raised $4.5 Mn from existing investors. According to Inc42’s datalabs, the Vineeta Singh-led startup has raised more than $85 Mn in total till date backed by the likes of Elevation Capital, A91 Partners and IndiaQuotient, among others.

SUGAR Cosmetics was founded in 2015 by husband-wife duo of Vineeta Singh and Kaushik Mukherjee. It offers multiple beauty and personal care products via an omnichannel network and claims to have about 45,000 retail stores across India and also sells via its website.

Last year, the startup also partnered with ecommerce-focussed SaaS solution provider Unicommerce to boost its cross selling and upselling efforts.

On the financial front, SUGAR cosmetics posted a revenue of INR 505.1 Cr in FY24, up 20% from INR 420.3 Cr in the previous fiscal period. The growing top line helped the startup to narrow down its net loss by 11.3% to INR 67.6 Cr during the financial period under review from INR 76.2 Cr in FY23.

The startup competes with the likes of Mamaearth, Renee and mcaffeine in the Indian market. India’s BPC sector is growing at a fast rate and the current fundraise will help SUGAR to capitalise on the market which is expected to become a $28 Bn+ opportunity by 2030.