SUGAR Cosmetics raises ₹145 Cr at 75–80% valuation cut
A91 Partners invested ₹144.47 Cr in SUGAR Cosmetics at a reported ₹550–600 Cr post-money valuation. The Mumbai-based beauty brand’s FY25 revenue fell 20% to ₹404.4 Cr, while net loss nearly doubled to ₹135 Cr amid reported offline-store rationalisation.
What happened
Sugar Cosmetics · Mumbai-based D2C beauty brand SUGAR Cosmetics raised ₹144.47 Cr from A91 Partners at a ₹550-600 Cr post-money valuation, down 75-80%. FY25
Key facts
- ₹144.47 Cr ($15.3 Mn) fresh equity raised from A91 Partners
- 1.12 lakh Series D7 CCPS issued at ₹12,871 each
- Post-money valuation: ₹550-600 Cr ($58-64 Mn)
- Valuation cut: 75-80% from ₹2,600-2,700 Cr in November 2024
- Peak valuation: about ₹3,000 Cr ($500 Mn) in 2022
- FY25 net loss: ₹135 Cr versus ₹68.4 Cr in FY24
- FY25 operating revenue: ₹404.4 Cr versus ₹505.1 Cr in FY24
- FY25 EBITDA loss: ₹116 Cr versus ₹48.5 Cr in FY24
- 30-40% of newly opened physical stores reportedly shut
- Total funding to date: $90 Mn
Why this matters
The steep down-round and retail rationalisation could make SUGAR a more accessible strategic partnership or acquisition target for beauty, consumer and omnichannel players seeking an established Indian brand.
What to watch
- FY26 revenue trajectory versus FY25 revenue of ₹404.4 Cr, especially whether sales return to growth after store rationalisation.
- Net-loss trend, EBITDA burn, cash runway and any evidence that the ₹145 Cr round is primarily balance-sheet support rather than growth capital.
- Number of owned outlets closed, opened or shifted to franchise/shop-in-shop formats.
- Marketplace and quick-commerce contribution, repeat rates, gross margin and customer-acquisition-cost trends.
- Any additional fundraise, preference-share restructuring, investor rights changes or strategic acquisition discussions.
- Competitor actions from Nykaa Cosmetics, Mamaearth, Lakmé, Maybelline and D2C beauty brands that could raise marketing and discount pressure.
- Accelerate closure or conversion of low-productivity offline stores and renegotiate mall, distributor and warehouse costs.
- Concentrate marketing spend on hero SKUs, repeat-purchase categories and creator-led digital acquisition with measurable contribution margins.
- Expand capital-light distribution through Nykaa, Amazon, Myntra, quick-commerce platforms and shop-in-shop counters rather than owned stores.
- Use the funding to improve inventory turns and reduce discount-led sales, even at the cost of slower top-line growth.
- Seek strategic partnerships or secondary investor interest once losses, gross margin and monthly sales show sustained improvement.