SUGAR Cosmetics raises ₹145 crore at a valuation cut of up to 80%
A91 Partners led a ₹144.47 crore fresh equity round valuing the beauty brand at ₹550–600 crore post-money, versus ₹2,600–2,700 crore in late 2024. SUGAR’s FY25 revenue fell 20% while net and EBITDA losses more than doubled after aggressive offline expansion.
What happened
Sugar Cosmetics · Mumbai-based D2C beauty brand SUGAR Cosmetics raised ₹144.47 crore from A91 Partners at a ₹550-600 crore post-money valuation, about 75-80%
Key facts
- ₹144.47 Cr ($15.3 Mn) fresh equity raised
- 1.12 lakh Series D7 CCPS issued
- ₹12,871 issue price per CCPS
- ₹550-600 Cr ($58-64 Mn) post-money valuation
- 75-80% valuation cut versus ₹2,600-2,700 Cr in November 2024
- ₹433.6 Cr pre-money valuation
- ₹3,000 Cr ($500 Mn) peak valuation 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 physical stores reportedly shut
- $90 Mn total funding to date
Why this matters
The funding round creates a potential strategic-entry window for larger beauty, consumer, or retail players seeking a recognized brand at a substantially lower valuation.
What to watch
- Quarterly revenue trend after the reported FY25 decline and whether growth returns without heavier discounting.
- Store additions, closures and same-store productivity disclosures.
- Gross margin, EBITDA-loss trajectory, inventory days and receivable growth.
- Any secondary share sale, further fundraising, investor writedowns or changes in board representation.
- Competitor funding rounds and valuation marks for other omnichannel beauty brands.
- Evidence of a strategic partnership, distribution deal or acquisition discussions.
- Prioritize capital toward inventory turns, top-performing stores and profitable marketplace channels rather than broad offline expansion.
- Reduce low-velocity SKUs, simplify promotions and tighten working-capital controls.
- Renegotiate distributor, retailer and store-commercial terms; rationalize underperforming physical points of sale.
- Use the lower valuation to reset employee-option expectations and retain critical operating talent.
- Communicate a credible path to contribution-margin and EBITDA improvement to support future fundraising.