SUGAR cosmetics fund-raises USD 21 million from Elevation Capital, investors to fuel Omnichannel

The year 2021 is off to a strong start for digital-first beauty player SUGAR Cosmetics as they announce a USD 21 Million (INR 153 Cr) Series C funding round led by Elevation Capital (formerly, SAIF Partners), with existing investors A91 Partners, India Quotient participating and strategic venture debt from Stride Ventures.

SUGAR Cosmetics started as a direct-to-consumer cosmetics brand by Vineeta Singh and Kaushik Mukherjee in 2015 with products that were specifically created to suit Indian skin tones. While eCommerce still contributes ~50 per cent to SUGAR’s revenue, the brand has also built an omni-channel distribution network that includes 10,000+ retail outlets across 130+ cities to take their award-winning range to the doorstep of beauty enthusiasts across the country.

Today, SUGAR is a Top five cosmetics brand by sales contribution at most stores of retail chains like Lifestyle, Shoppers Stop and Health & Glow. Having closed FY20 at a net revenue of 105 core, the Company is currently at an annual net revenue run rate of ~200 crore with the aim to double this in the next 12 months. “With SUGAR’s 6X jump in revenues over the last two fiscal years, we are extremely grateful to all ourtics raises USD 21mn in Series C funding from Elevation customers who believe in our mission to make high-quality inclusive beauty accessible to everyone.

While the COVID-19 disruption was a spanner in the works, we were quick to bounce back to 150 per cent of our pre-Covid revenues last quarter and that too profitably. A brand can only be as resilient as the team that drives it and for this I thank my colleagues, our customers and existing investors who supported us through unpredictable times. Today, Kaushik and I are delighted to welcome Elevation Capital as the newest shareholder in our cap table as we power ahead to build a loved and enduring brand over the next decade,” said Vineeta Singh, Co-founder and CEO, SUGAR Cosmetics, speaking on the brand’s growth.

Apart from investments in keeping the brand’s fast-moving product range ahead of the curve, the funds are expected to be used in building both digital and retail distribution to further reach in existing and new geographies. The brand’s Android and iOS apps have seen a million downloads with a 4.7-star rating indicating a clear choice amongst the brand’s loyalists. The retail footprint is also expected to surpass 40,000+ outlets in the current year.