SUGAR Cosmetics Raises ₹144.5 Cr as Valuation Resets Sharply

SUGAR Cosmetics has raised ₹144.5 crore in fresh equity funding from existing investor A91

Partners, giving the beauty brand new capital at a sharply lower valuation than its previous

funding rounds. A91 subscribed to the entire issue through 1.12 lakh compulsorily convertible

preference shares, deepening its exposure to the company.

The round marks a major reset in investor expectations. Entrackr estimates SUGAR’s post-

money valuation at around ₹755 crore, roughly 75% below its ₹3,000 crore peak in 2022. Inc42

calculates the latest valuation at ₹550–600 crore, implying a 75–80% reduction from the

₹2,600–2,700 crore level at which the company raised capital in 2024. The publications

therefore differ on the exact valuation, but both point to a steep correction.

The reset comes after a difficult FY25. Operating revenue declined about 20% year-on-year to

₹404.4 crore from ₹505.1 crore, while net loss nearly doubled to ₹135 crore from ₹68.4 crore.

EBITDA loss also widened to ₹116 crore. SUGAR has not yet reported its FY26 financial

performance.

Its aggressive offline expansion appears to have contributed to the pressure. Inc42 reported that

SUGAR had to shut 30–40% of the physical stores it opened because of store-level losses. At

the same time, Entrackr reports that some existing investors are exploring secondary exits

worth up to ₹150 crore at steep discounts to the company’s earlier valuation.

Founded by Vineeta Singh and Kaushik Mukherjee, SUGAR built one of India’s better-known

digital-first beauty brands before expanding heavily into physical retail. The latest funding gives

it additional room to stabilise operations, but the next phase will be less about aggressive

expansion and more about rebuilding growth, improving store economics and narrowing losses.