SUGAR Cosmetics raises $50 million funding at $500 million valuation
Mumbai-based personal care brand SUGAR Cosmetics has raised $50 million in Series D fundraise at a valuation of $500 million. The funding round for the direct-to-consumer (D2C) company was led by the Asia wing of L Catterton. A91 Partners, India Quotient, and Elevation Capital also participated. The move comes at a time when funding rounds are taking much longer to close.
Why does this story matter?
SUGAR has managed to raise funds at a time when companies are going on hiring freezes, reducing advertising and marketing expenditure, and shutting down non-core verticals. The cosmetics brand is quite popular among millennials and GenZ and has a huge scope for expansion. Notably, this is L Catterton's first investment in India. The firm was established in 2016.
The company has raised $85.5 million till now
Husband-wife duo Kaushik Mukherjee and Vineeta Singh co-founded SUGAR Cosmetics in 2012. It focuses on online and offline sales channels. The brand raised Rs. 85 crore from A91 Partners in March 2019, and $2 million from Stride Ventures in October 2020. In February 2021, it raised $21 million in a funding round led by Elevation Capital. To date, the brand has raised $85.5 million.
SUGAR has a monthly net revenue of Rs. 27-30 crore
SUGAR sells eye brushes, lipsticks, and eyeliners. It recently ventured into the skincare segment, selling moisturizers and face masks. The decade-old brand has over 100 stores across the country and takes on rivals such as Mamaearth, MyGlamm, Nykaa, and Wow Skin Science. It has an annualized revenue of roughly Rs. 320-350 crore, i.e. a net revenue of about Rs. 27-30 crore per month.
'Will work with SUGAR to increase global exposure'
The managing director of L Catterton Asia, Anjana Sasidharan put out a statement highlighting the firm's expectations from SUGAR following the fundraiser. "We look forward to partnering with the company to thoughtfully unlock international exposure and drive further growth, leveraging our experience of working with over 20 beauty and personal care companies in L Catterton's portfolio across the Americas, Europe, and Asia."
