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D2c Insider Pulse | Voice of the D2C Community in India

Sorry Sugar Raises $1 Mn to Scale Zero-Added-Sugar Beverage Business

Gurugram-based brand targets North India expansion, ₹60 Cr+ ARR and new monk-fruit sweetened products across D2C, quick commerce and retail.

Sorry Sugar has raised $1 million in a seed funding round led by the Dhanuka family and Amishi London, giving the Gurugram-based beverage brand fresh capital to expand its presence across North India and accelerate new product launches.

Founded in 2026 by Deepak Pathak, Kunal Verma, Shashank Sherawat and Saiyam Malik, Sorry Sugar is building a beverage portfolio focused on zero-added-sugar consumption. Its current range includes coffee-based flavours such as Hazel Almond Latte, Silk Chocolate Mocha, Sea Salt Caramel, French Vanilla Cloud and Butter Gooey Toffee.

The brand says its beverages are sweetened with monk fruit and contain fibre, positioning them as alternatives for consumers seeking to reduce their sugar intake. To encourage product trials, Sorry Sugar offers a ₹399 trial pack featuring five flavours, with the full amount redeemable when customers upgrade to a larger pack.

The startup claims to have generated more than ₹1 crore in revenue during its first month of operations. It currently operates three offline stores across Gurugram and Delhi, while its next phase is centred on building a broader omnichannel presence.

The fresh funding will support Sorry Sugar’s expansion across online and offline channels in North India. The company plans to scale through its direct-to-consumer platform, quick commerce and physical retail, creating multiple consumer touchpoints as it works towards an annual recurring revenue target of more than ₹60 crore by the end of the current financial year.

Product expansion is also part of the growth strategy. Sorry Sugar plans to launch zero-added-sugar gelatos sweetened with monk fruit, extending its proposition beyond beverages into another indulgent category.

The funding arrives as activity grows across India’s functional and clean-label beverage segment. Other emerging brands are also attracting capital: Peping, which offers prebiotic fizzy drinks and probiotic digestive shots, raised ₹2.5 crore from IAN Angel Fund in March this year. Swizzle raised ₹2 crore in seed funding in December last year, while TABP Snacks and Beverages raised $3 million to expand its manufacturing and distribution network.

For Sorry Sugar, the combination of a zero-added-sugar proposition, coffee-led flavours, early revenue traction and an expanding retail strategy provides a foundation for its next stage of growth. With plans spanning D2C, quick commerce, offline stores and new product categories, the brand is aiming to build a broader clean-label beverage and indulgence platform in North India. Its focus on trials and varied flavour formats could help introduce the category to consumers.

Source: Based on publicly available reporting, with additional editorial adaptation and analysis.

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