The D2C beauty brand is securing fresh capital from an existing investor as it looks to rebuild momentum, strengthen its business and return to growth.
SUGAR Cosmetics has raised ₹144.5 crore in a fresh funding round led entirely by existing investor A91 Partners, giving the D2C beauty brand additional capital to strengthen its business and pursue its next phase of growth.
The company’s board approved the allotment of 1,12,248 Series CCPS at ₹12,871 per share, with A91 Partners subscribing to the entire issue. Following the transaction, A91 will hold approximately 19.97% in SUGAR.
The funding values the company at around ₹755 crore, compared with its peak valuation of roughly ₹3,000 crore in 2022. The latest investment comes as some existing investors are also exploring secondary stake sales, with potential transactions of up to ₹150 crore being discussed.
For SUGAR, however, the primary round represents continued backing from an investor that already holds a significant stake in the business. The fresh capital provides the company with resources to stabilise operations, strengthen its financial position and focus on rebuilding growth.
Founded by Vineeta Singh and Kaushik Mukherjee, SUGAR began as an online-first beauty brand before developing a sizeable offline presence. The company sells makeup and personal care products through its own platform, marketplaces and retail outlets, giving it an established omnichannel distribution network.
The brand reached a valuation of around $400 million in 2022, when it raised $50 million in Series D funding led by L Catterton. At the time, SUGAR was expanding its offline retail footprint and building its position as a youth-focused cosmetics brand.
The business subsequently faced pressure on its financial performance. Revenue declined 20% to ₹404 crore in FY25 from ₹505 crore in FY24, while net loss increased to ₹135 crore from ₹68 crore.
Despite these challenges, the latest funding gives SUGAR an opportunity to sharpen its product portfolio, improve unit economics and rebuild consumer momentum. Its existing brand recognition, digital presence and retail distribution provide a foundation for the next phase.
In a recent LinkedIn post, Vineeta Singh acknowledged that the latest round was raised at a significant discount to the company’s peak valuation, while emphasising that the team is focused on building again. She also highlighted the importance of backing the team working on the ground.
The funding therefore marks not just a financial reset, but an opportunity for SUGAR to return to its core strengths as an Indian beauty brand. With fresh capital and continued support from A91 Partners, the company can focus on strengthening its products, consumer proposition and distribution while working towards renewed growth.
Source: Based on publicly available reporting, with additional editorial adaptation and analysis.
