SUGAR Cosmetics Secures ₹145 Crore Funding From A91 Partners Amid Valuation Cut
Beauty brand SUGAR Cosmetics has raised ₹144.47 crore ($15.3 million) in a new funding round from venture capital firm A91 Partners. The investment comes at a significantly reduced valuation compared to previous rounds.
D2C beauty and personal care brand SUGAR Cosmetics has secured ₹144.47 crore ($15.3 million) in equity funding from venture capital firm A91 Partners. Regulatory filings accessed indicate the company's post-money valuation for this round stands between ₹550-600 crore ($58-64 million).
This valuation represents a substantial cut of approximately 75-80% from the company's valuation during its funding round in November 2024, when it was valued between ₹2,600-2,700 crore. SUGAR Cosmetics had previously reached a peak valuation of around ₹3,000 crore in 2022.
The company's financial performance for fiscal year 2025 showed a decline in operating revenue by about 20% to ₹404.4 crore, with net losses nearly doubling to ₹135 crore. These financial challenges are partly attributed to aggressive offline expansion, which has reportedly led to the closure of 30-40% of its physical stores.
Founded in 2015, SUGAR Cosmetics offers beauty and personal care products through its website, physical stores, and e-commerce platforms. The company has raised approximately $90 million to date from investors including Elevation Capital and A91 Partners. SUGAR competes in the Indian market with companies like Nykaa and Mamaearth.