Sumit Vishwakarma05 Sep 2026
14:28IST
New Update
SUGAR Cosmetics, an Indian omnichannel beauty and cosmetics brand, has raised about Rs 144.5 crore from existing investor A91 Partners, according to regulatory filings, in a funding round that values the company substantially below levels seen in previous rounds.
The Mumbai-based company allotted 112,248 compulsorily convertible preference shares to A91 Emerging Fund III at an issue price of Rs 12,871 each. Its board approved the transaction on 1 September.
Under the terms of the issue, the shares will convert into equity if the company lists or one day before the end of a 20-year period from their date of issue.
According to the reports, the company’s post-money valuation stood at between Rs 550 crore and Rs 600 crore.
In November 2024, the company was estimated to be valued at between Rs 2,600 crore and Rs 2,700 crore when it raised about Rs 38 crore from existing investors, including Anicut Equity Continuum Fund, Elevation Capital, Malabar Investment and L Catterton.
SUGAR had previously raised $50 million in a Series D round led by L Catterton in May 2022.
The latest investment comes after a weakening in the company’s financial performance.
Regulatory filings show that operating revenue fell about 20% to Rs 404.4 crore in the financial year ending March 2025, from Rs 505.1 crore a year earlier. Net loss nearly doubled to Rs 135 crore from Rs 68.4 crore.
SUGAR’s EBITDA loss also rose to about Rs 116 crore in FY25 from Rs 48.5 crore in FY24. The company has yet to report its financial results for FY26.
Founded in 2015 by Vineeta Singh and Kaushik Mukherjee, SUGAR began with a digital-focused model before expanding into physical retail. It now sells beauty and personal care products through its website, ecommerce platforms and stores.
The latest investment provides SUGAR with fresh capital after a financial year in which revenue declined and losses widened, while also underlining the sharp valuation correction the company has experienced since its earlier fundraising rounds.
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