Sugar Cosmetics bags US$ 21M in Series C funding

Mumbai, India-based SUGAR Cosmetics has announced in February 2021 that it has bagged US$ 21M in a Series C funding round led by Elevation Capital. Previous investors A91 Partners, India Quotient, and Stride Ventures also participated in the funding round. Vertices Partners was the legal counsel for the startup in this round. Post the funding round; SUGAR Cosmetics is said to be valued at more than US$ 100M.

The startup will use proceeds from the funding round to create digital and retail supply networks to expand its reach in existing and new regions. It will also utilize the funds on increasing its current US$ 27.4M revenue run rate by two folds over the next one year. It aims to sell through 40,000 retail outlets in the next 12-18 months to achieve this target.

Kaushik Kumar and Vineeta Singh founded SUGAR Cosmetics in 2012. The D2C brand is one of India’s rapidly-growing beauty brands and manufactures products in the lips, eyes, face, nails, and skin categories. These beauty products are made in Germany, Italy, India, USA, and Korea and are sold across 10,000 retail outlets in more than 130 cities in India. It has a presence in SUGAR-branded stores and popular retail chains such as Shoppers Stop, Lifestyle, Central, Health & Glow, and NewU.

CEO of Sugar Cosmetics, Vineeta Singh, claims while the Covid-19 pandemic caused disruption in their work, they were quick to bounce back to 150% of their pre-Covid returns in the previous quarter and that too profitably. The startup also said in a statement said it had closed FY2020 with net revenue of US$ 14.4M. It has also collaborated with various famous e-commerce apps such as Amazon, Myntra, Flipkart and Nykaa to enhance its e-commerce sales. The partnership did turn out to be fruitful during the resultant Covid-19 lockdown, with about 70%-80% of its sales coming through online modes in an otherwise offline sales dominated business. SUGAR Cosmetics believes that the offline sale mode will remain to dominate its revenue pipeline in the ensuing five years as well.

Deepak Gaur, Partner at Elevation Capital, said in a short period of time SUGAR Cosmetics has worked really well to establish itself as the go-to beauty brand in India. He went on to add that SUGAR has created products specifically suited for the Indian market and also raised awareness regarding various make-up products via its social media channels. He quoted, “We are super excited to be a part of the next chapter of their journey”.

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