SUGAR Cosmetics Raises ₹145 Cr From A91 At A Near 80% Valuation Cut

SUGAR Cosmetics, a D2C beauty and personal care brand, has raised ₹145.47 Cr ($15.3 Mn) in a Series D7 round led by VC firm A91 Partners. The startup allocated 1.12 Lakh CCPS to A91 Emerging Fund III at ₹12,871 per share, which will convert into equity shares upon listing or 20 years from the issue date. The fresh capital brings SUGAR's post-money valuation to a range of ₹550-600 Cr ($58-64 Mn), a 75-80% reduction from its valuation of ₹2,600-2,700 Cr in November 2024.

This is a significant drop from its peak valuation of ₹3,000 Cr ($500 Mn) in 2022. Despite the valuation cut, SUGAR's net loss for FY25 nearly doubled to ₹135 Cr, and its operating revenue declined by 20% to ₹404.4 Cr. The company has yet to report its FY26 financials. SUGAR, founded in 2015 by Vineeta Singh and Kaushik Mukherjee, sells beauty and personal care products through its website, physical stores, and ecommerce platforms.

The brand competes with listed companies like Nykaa and Mamaearth and operates four brands - SUGAR, POP, ENN, and Quench Botanics. India is entering the D2C 3.0 era, with beauty and personal care expected to command over two-thirds of the overall GMV across ecommerce by 2031.