SUGAR Cosmetics raised round ₹145 Cr in fairness funding from A91 Companions
The corporate’s valuation has plunged round 75-80% to ₹550–600 Cr, in comparison with the ₹2,600-2,700 Cr valuation at which it had raised funds in November 2024
SUGAR’s working income plunged by about 20% YoY to ₹404.4 Cr in FY25, whereas its web loss practically doubled to ₹135 Cr in the identical interval
D2C magnificence and private model Sugar
Cosmetics has raised ₹144.47 Cr ($15.3 Mn) in a recent fairness spherical from VC agency A91 Companions, as per the startup’s MCA filings accessed by Inc42.
It allotted 1.12 Lakh Sequence D7 CCPS to A91’s entity A91 Rising Fund III at a problem worth of ₹12,871. The CCPS will compulsorily convert into fairness shares upon itemizing of the startup or at some point previous to the expiry of 20 years from subject date. The startup’s board of administrators handed the decision at its assembly held on September 1.
The startup has raised the recent capital at a major valuation reduce. Its post-money valuation with the spherical, which appears to be its Sequence D fairness spherical, is within the vary of ₹550-600 Cr ($58-64 Mn), as per Inc42’s calculations.
This suggests a hefty 75-80% reduce from the ₹2,600-2,700 Cr valuation it commanded again when it had raised funds in November 2024. The startup’s pre-money valuation for the spherical stood at ₹433.6 Cr. SUGAR’s peak valuation was about ₹3,000 Cr ($500 Mn) again in 2022.
Inc42 has reached out to the startup for his or her response on the event. The story can be up to date in case they reply.
Notably, SUGAR’s web loss for the fiscal yr FY25 practically doubled to ₹135 Cr from ₹68.4 Cr. Its working income additionally plunged by about 20% to ₹404.4 Cr in FY25, in comparison with ₹505.1 Cr in FY24.
On the similar time, its EBITDA losses greater than doubled to ₹116 Cr in FY25 as towards ₹48.5 Cr in FY24.
To notice, SUGAR is but to report its monetary efficiency for the fiscal yr FY26.
“The corporate has demonstrated a sustained and worsening sample of economic deterioration over the previous two monetary years,” wrote Sayali Deshkar, the registered valuer, in a valuation report hooked up with the filings dated June 30, 2026.
SUGAR’s economics have been impacted primarily by its aggressive offline growth. As per an ET report, the startup needed to shut 30-40% of the bodily shops that it opened because of the losses incurred per retailer.
Inc42 has reached out to the corporate with questions and the story shall be up to date with their response.
Based in 2015 by the husband-wife duo of Vineeta Singh and Kaushik Mukherjee, Mumbai-based SUGAR sells magnificence and private care merchandise by itself web site, in bodily shops, and thru ecommerce platforms.
Thus far, the startup has raised $90 Mn from traders like Elevation Capital, A91 Companions, Anicut Capital, and IndiaQuotient.
SUGAR operates 4 manufacturers – SUGAR, POP, ENN, and Quench Botanics – and competes with listed corporations like Nykaa and Mamaearth in addition to the likes of Renee Cosmetics.
The stakes are excessive with India entering the D2C 3.0 era the place D2C manufacturers are anticipated to command greater than two-thirds of the general gross merchandise worth (GMV) throughout ecommerce by 2031.
Magnificence and private care is among the most funded segments inside the D2C ecosystem, with this house drawing over $1.1 Bn in funding throughout 201 offers between 2015 and Q1 FY26.
