SUGAR Cosmetics, the beauty e-commerce brand led by Vineeta Singh, saw its sales inching closer to the INR 500 crore mark in the financial year ending on March 31, 2023. In FY23, the startup reported an operating revenue of INR 420.2 crore, marking an impressive 89% increase from the INR 221.8 crore generated in the previous fiscal year.
It is pertinent to mention that SUGAR Cosmetics earns its revenue by selling cosmetics and beauty products.
Established by Singh and Kaushik Mukherjee in 2015, SUGAR Cosmetics embarked on its journey as a D2C brand, utilizing an online platform. Later, it transitioned to an omnichannel model and claims to have over 40,000 retail outlets across more than 550 cities in India. The platform markets products in the lips, eyes, face, nails, and skin categories.
Taking into account other income, the startup’s total revenue amounted to INR 428.3 Cr, marking a 91.3% increase from the INR 223.8 Cr generated in the previous fiscal year.
With the increase in revenue, the startup has managed to control its losses. In FY23, the startup incurred a net loss of INR 76.2 Cr, a marginal increase from INR 75.9 Cr in the previous fiscal.
SUGAR Cosmetics Expenditure Breakdown:
The Shark Tank judge played a key role in the startup’s total expenditure increase by 69% to INR 505.5 Cr in FY23, as compared to INR 300 Cr in FY22.
SUGAR’s primary expenditure centered around marketing. In a bid to enhance brand awareness, the startup allocated INR 162.5 Cr, constituting nearly 40% of its revenue. The advertising expenses for FY23 were 67% higher than the INR 97.5 Cr spent in the preceding fiscal year.
To replenish its shelves, SUGAR allocated INR 113.9 Cr in the year under review, reflecting a 72% increase from the INR 66.3 Cr spent in FY22.
In FY23, SUGAR allocated INR 60.8 Cr for employee salaries and other welfare expenses, marking a 71% increase from the INR 35.5 Cr spent in FY22. According to LinkedIn, the startup maintains an employee headcount of approximately 1,000.
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The startup enhanced its EBITDA margin to -14.55% in FY23, a notable improvement from the -30.48% recorded in FY22.
SUGAR Cosmetics secured approximately $85 million in various funding rounds, with Elevation Capital, A91 Partners, and India Quotient being some of its investors.
The startup, last valued at around $500 million, was reportedly in talks to raise another $100 million at approximately a $700 million valuation. SUGAR closely competes against the likes of WoW Skin, which has seen its sales plummet in FY23, Plum, MamaEarth, and Nykaa, among others.
