Direct-to-consumer (D2C) brand Sugar Cosmetics is gearing up to raise $100 million in a fresh funding round, eyeing a valuation between $700-800 million. Insiders reveal that around 60-70% of this funding will come from new equity issuance, with existing investors selling the remaining stake. The company is engaged in discussions with sovereign wealth funds and private equity entities for this financing endeavor.
In the midst of a funding winter in the startup ecosystem, companies are finding it challenging to secure investments. In India, VC funding deals witnessed a 42.3% YoY decline in volume and a substantial 70.4% drop in disclosed funding value during the first three quarters of 2023. Sugar Cosmetics, aiming for profitability in FY24, stands out due to its prudent financial approach, having cut back on marketing and growth expenditures.
The Mumbai-based company, last valued at $450-500 million after a $50 million funding round in May 2022, anticipates a higher valuation this time. Some early backers might exit partially or completely. Founded in 2012, Sugar Cosmetics, led by Vineeta Singh and Kaushik Mukherjee, offers cruelty-free beauty products and competes with brands like Mamaearth, Wow Skin Sciences, Good Glam, and Nykaa.
Annualized sales of ₹700 crore were reported in July 2023.
That’s fantastic news! Sugar Cosmetics is also making waves in the beauty industry. They have recently secured a whopping ₹100 crore in funding and are becoming a major player in the market. Sending my best wishes to the Sugar Cosmetics team!
~ Dr Shishir Gupta founder & CEO of StartupLanes
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