Sugar Cosmetics, a leading beauty ecommerce brand, has surpassed the INR 500 crore revenue mark in the financial year 2023-24, registering a 20% year-on-year (YoY) growth.
Sugar Cosmetics narrows loss to INR 67.6 Cr
According to INC42, the Vineeta Singh-led company reported INR 505.1 crore in revenue, up from INR 420.3 crore in the previous fiscal year. The D2C company generates revenue through its diverse range of cosmetics and beauty products, including lipsticks, nail polishes, makeup products, moisturisers, and sunscreens. The startup’s net loss narrowed by 11.3% to INR 67.6 crore, driven by growth in sales and improved margins.
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Established in 2015 by Vineeta Singh and Kaushik Mukherjee, Sugar Cosmetics began as a direct-to-consumer brand with an online platform. Today, it boasts a presence in over 45,000 retail stores across India, with the country being its largest market. However, global sales declined by 46% to INR 2.6 crore.
Sugar Cosmetics aims to release IPO in 2-3 years
Meanwhile, the company last raised $50 million in its Series D funding round in 2022. Reports suggest Malabar Investments is considering acquiring a stake in the startup through a secondary deal worth INR 80-100 crore.
Further, the company aims to go public through an initial public offering (IPO) within the next two to three years, but only after achieving profitability and exceeding INR 1,000 crore in revenue.
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Notably, Sugar Cosmetics’ total expenses increased by 15.5% to INR 583.7 crore, with advertising expenses accounting for over 27% of the total expenditure. The company reduced spending on procurement by 27% to INR 113.4 crore and employee benefits rose to INR 70 crore.
Moving forward, Sugar Cosmetics competes with prominent players like Mamaearth, Nykaa, Maybelline, and Loreal in India’s rapidly growing beauty and personal care segment. With its sights set on IPO, the company is poised for continued growth and expansion.
