Mumbai-based D2C brand Sugar Cosmetics is set to raise INR 38 Cr ($4.5 Mn) from its existing investors, including Anicut Equity Continuum Fund, Elevation Capital, Malabar Investment, L Catterton, among others.
Sugar Cosmetics secures fresh round at INR 2600-2700 Cr
According to INC42, the startup secured the fresh funding round at a valuation of INR 2,600- INR 2,700 Cr. This is almost the same valuation at which it raised $50 Mn in 2022.
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Responding to queries on the development, SUGAR cofounder and COO Kaushik Mukherjee said, “The investors who you have named are all existing shareholders of the company and some of the tranches of their investments may come into the company at different timelines.”
Malabar Investment acquires stake in Sugar in INR 80 Cr
The fresh development has come almost a year after Malabar Investments acquired a stake worth INR 80 Cr in SUGAR from its existing investors – India Quotient and RB Investments. Sources told further that the startup may see another secondary transaction next year, giving exit to more of its early investors. SUGAR will likely use the fresh capital to scale Quench Botanics, a Korean skincare brand it launched last year with Bollywood actress Kareena Kapoor.
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Mukherjee said, “Our investments in FY25 are largely targeted towards scaling our skincare brand Quench Botanics that has seen strong traction in quick commerce and other ecommerce portals in the past six months. We have also earmarked some capital to build distribution for our more affordable range of colour cosmetics under the SUGAR POP sub-brand.”
Besides, the startup is also working to strengthen the distribution network of SUGAR POP. In the financial year 2023-24 (FY24), SUGAR reported an operating revenue of INR 505.1 Cr, a 20% increase from INR 420 Cr in the previous fiscal year.
