D2C beauty and personal care company SUGAR Cosmetics is set to raise INR 38 Cr ($4.5 Mn) from its present investors, including Anicut Equity Continuum Fund, Elevation Capital, Malabar Investment, and L Catterton, one of the most important D2C fundraising news of the week. According to regulatory papers and Inc42 projections, the most recent D2C funding round values the company at INR 2,600–2,700 Cr ($320 million), the same assessment at which it secured $50 million in 2022.
Funding D2C Plans for Growth
Originally founded in 2015 by Vineeta Singh and Kaushik Mukherjee as a simple directtoconsumer India site, SUGAR Cosmetics soon embraced an omnichannel D2C approach and now features over 45,000 retail locations. One of the fastest expanding sectors in the D2C ecosystem India, the D2C beauty and skincare India segment has been pioneered by SUGAR in partnership with companies such Mamaearth and Nykaa.
Confirming the growth, Kaushik Mukherjee, Cofounder and COO of SUGAR, said that the participating investors are current stakeholders with several tranches of funding projected over time. Almost a year after Malabar Investments bought early investors India Quotient and RB Investments INR 80 Cr worth of stock, this capital injection arrives.
Sources indicate that the corporation may also have another secondary sale in 2026, so allowing some early investors to leave.
Center on Quench Botanics and Skincare Expansion
Mukherjee said, “Our investments in FY25 are mostly aimed at scaling Quench Botanics, a Korean skincare line launched under SUGAR in partnership with actress Kareena Kapoor, which has shown great traction on quick commerce D2C platforms and prominent ecommerce portals over the last six months.”
The brand is also improving the accessibility of SUGAR POP, its reasonably priced line of color cosmetics, to target consumers who are quality-conscious but price-sensitive. This strategic emphasis on D2C product releases and portfolio diversification highlights SUGAR’s D2C growth strategy for 2025.
Robust financial development in FY24
SUGAR recorded an operating income of INR 505.1 Cr in the financial year 202324, a 20% rise from INR 420 Cr in FY23. The brand brilliantly decreased its net loss by 11% to INR 67.6 Cr, showing better operational efficiency. This financial result is consistent with SUGAR’s ongoing plan of matching profitability with D2C revenue expansion.
Position in the D2C Competitive Beauty Market
Competing with major worldwide companies like Mamaearth, Nykaa, Maybelline, and L’Oreal as part of the new generation of D2C companies expanding quickly, SUGAR SUGAR continues to top the D2C sector news headlines with its strong D2C brand building tales, inventive influencer marketing, and powerful offline presence.
Given its great consumer base and brand recognition, the company is regarded as a possible d2c IPO news update in the years to come, having raised about $90 Mn in investment to date.
The investors’ confidence in the D2C business model India is underlined by Sugar Cosmetics’ capacity to keep its worth despite fresh cash raising. Focused on skincare, omnichannel D2C approach, and growing subsidiary brands like SUGAR POP, the company is well positioned to be one of the best-performing D2C companies FY25.
