SUGAR Cosmetics
Key Highlights:
  • Mumbai-based D2C cosmetics brand SUGAR Cosmetics has closed its $50 Mn Series D fundraise led by the Asia fund of L Catterton.
  • Mumbai-based D2C cosmetics brand SUGAR Cosmetics was founded by Vineeta Singh and Kaushik Mukherjee in 2015.
  • According to Sugar Cosmetics, the company generated 127.8 Cr in revenue for FY21, which was 21.6% higher than FY20.

Mumbai-based D2C cosmetics brand SUGAR Cosmetics was founded by Vineeta Singh and Kaushik Mukherjee in 2015. The D2C cosmetics brand has closed its $50 Mn Series D fundraise led by the Asia fund of L Catterton. The startups’ existing investors, A91 Partners, Elevation Capital and India Quotient have even participated in the funding round.

The new members of directors have been appointed after the funding. L Catterton will be Asia’s managing director and Anjana Sasidharan will be joining the company’s board of directors.

SUGAR Cosmetics started its journey with an online platform as a D2C brand. Later on, the company twirled to an omnichannel model and currently has more than 40,000 retail outlets across India. The company offers products for lips, eyes, face, nails & skin.

Market Competitions:

SUGAR Cosmetics competes with the Startups like Mamaearth, Nykaa and WOW Skin. Even FMCG giants like Unilever and L’Oreal are on the list. With a strong online presence and offline distribution network, the startup claims to have customers in a wide range of Indian cities – from metros to Tier 2+ cities.

In a Series C funding round led by Elevation Capital, A91 Partners and India Quotient, SUGAR had raised $21 Mn more than a year ago.

According to Sugar Cosmetics, the company generated 127.8 Cr in revenue for FY21, which was 21.6% higher than FY20. During the same period, the D2C brand’s operating revenue increased by 22%. Also in FY21, the omnichannel cosmetics brand managed to reduce its losses by 25% from FY20, reporting a loss of INR 28.2 Cr.

According to a report by Statista, the Indian beauty and personal care market is forecast to grow at a CAGR of 4.64% to $31.25 Bn by 2026, from $26.02 Bn in 2022.

Among the larger market for eCommerce in India, D2C has emerged as an important subsegment. By 2030, total eCommerce sales in the country will reach $400 Bn.

Recently, a couple of SUGAR’s competitors have even raised funds and made acquisitions in the segment. The D2C brand Mamaearth has added two new brands to its portfolio, skincare brand Dr Sheth’s and hair colour brand BBLUNT. Likewise, WOW Skin Science has raised an undisclosed amount from GIC.

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