Mumbai-based direct-to-consumer beauty brand SUGAR Cosmetics has secured ₹40.99 crore (approximately $5 million) in its latest funding round. The investment was led by Anicut Capital, with participation from existing backers including Stride Ventures and L Catterton. The company also raised ₹15 crore in debt financing from Stride Ventures to support working capital needs
Strategic Focus Areas for the Capital Inflow
This new infusion of capital closely follows SUGAR’s previous ₹38 crore funding (about $4.5 million) completed in November 2024
The latest funds are earmarked for:
- Scaling offline retail expansion and strengthening inventory management
- Continuing to grow its skincare vertical, especially the Quench Botanics brand launched in collaboration with celebrity partner Kareena Kapoor
- Expanding distribution of the affordable color cosmetics line (SUGAR POP) across India’s omnichannel ecosystem
Strong Investor Confidence and Brand Momentum
The fundraising reinforces investor confidence in SUGAR’s leadership and growth strategy. With a total funding base exceeding $85 million to date from marquee investors like Anicut Capital, L Catterton, Elevation Capital, A91 Partners, India Quotient, and Stride Ventures, the brand is well-capitalized for its next phase
Despite the challenging funding environment, SUGAR has maintained its valuation at around ₹2,600–2,700 crore (~$320M–$340M), matching its previous funding rounds
Financial Snapshot: Growth with Profitability Focus
In FY24, SUGAR reported operating revenue of ₹505.1 crore, a 20% YoY increase from ₹420 crore. Losses narrowed by 11% to ₹67.6 crore, indicating improved operational efficiency and a stronger push toward profitability
The brand continues to build momentum with over 45,000 retail touchpoints across 550+ cities, while also maintaining a robust online presence through D2C and major e-commerce platforms
Broader Industry Implications
SUGAR’s ability to raise capital amid a tougher funding climate underscores investors’ belief in the resilience of D2C beauty brands. The focus on profitability, omnichannel presence, and aspirational product lines like Quench Botanics and SUGAR POP positions the brand to compete effectively in a crowded market landscape.
The company is also considering secondary stake sales in 2025, offering earlier investors an opportunity to partially or fully exit at higher valuation terms
✅ Final Takeaways
- Funding secured: ₹41 crore (~$5 million) led by Anicut Capital
- Purpose: Scale retail footprint, support skincare and cosmetics verticals
- Valuation: Steady at ₹2,600–2,700 crore ($320M–$340M)
- Financial trends: Revenue growing to ₹505 crore; losses narrowing to ₹67.6 crore
- Strategic direction: Omnichannel expansion, profitability push, investor exits
