SUGAR Cosmetics raises ₹144 crore at a 75-80% lower valuation

A91 Partners invested ₹144.47 crore in SUGAR Cosmetics, valuing the beauty brand at an estimated ₹550-600 crore. The reset follows a nearly 20% FY25 revenue decline and widening losses after aggressive offline expansion.

— Source publishedMon, 7 Sept, 2026, 18:45 IST·First seen Mon, 7 Sept, 2026, 20:22 IST·Source NDTV Profit

What happened

Sugar Cosmetics · SUGAR Cosmetics raised Rs 144.47 crore from A91 Partners at an estimated Rs 550-600 crore valuation, down 75-80%. The beauty brand’s FY25

Key facts

  • Rs 144.47 crore fresh equity funding
  • 1.12 lakh Series D7 CCPS
  • Rs 12,871 per share
  • Rs 550-600 crore estimated post-money valuation
  • 75-80% valuation decline from Rs 2,600-2,700 crore in November 2024
  • Peak valuation around Rs 3,000 crore in 2022
  • FY25 operating revenue Rs 404.4 crore, down nearly 20% from Rs 505.1 crore
  • FY25 net loss Rs 135 crore versus Rs 68.4 crore
  • FY25 EBITDA loss Rs 116 crore

Why this matters

SUGAR’s 75-80% valuation markdown could create partnership or acquisition opportunities for strategic beauty players seeking an established omnichannel brand at a substantially reduced entry price.

What to watch

  • Quarterly revenue trend after the reported FY25 decline, especially same-store sales and marketplace growth.
  • Evidence of narrowing operating losses, lower discounting, improved gross margin and reduced inventory days.
  • Store closures, paused expansion, distributor consolidation or changes in the offline retail footprint.
  • Repeat purchase rates, average order value and the sales mix between marketplaces, owned digital channels and offline stores.
  • Any follow-on fundraising, secondary transactions, debt facilities or changes in investor/shareholder control.
  • Comparable funding rounds or valuation cuts among Indian beauty and personal-care brands.
  • Prioritize profitability by city, retail account and SKU; exit persistently loss-making offline doors.
  • Use the new capital to reduce stock-outs in high-velocity products while cutting slow-moving inventory and launch complexity.
  • Renegotiate distributor, marketplace, retail-media and store-in-store economics to improve gross-to-net margins.
  • Tilt marketing toward loyalty, creator-led conversion and repeat purchase rather than high-cost awareness campaigns.
  • Prepare for tighter investor oversight, including milestone-based capital deployment and a clearer path to EBITDA breakeven.
  • Explore selective strategic partnerships or a future sale process if a standalone recovery does not materialize within the funding runway.