SUGAR Cosmetics Raises ₹38 Crore to Expand Skincare and Affordable Beauty Lines

December 2, 2024
- By Rajat N

Quick Summary

SUGAR Cosmetics has raised ₹38 crore ($4.5 million) in funding to scale its skincare brand Quench Botanics and expand its budget-friendly SUGAR POP cosmetics line.
The brand plans to further capture the growing skincare market and make high-quality cosmetics more accessible to Indian consumers. Founded in 2015, SUGAR has grown from an online-only brand to a major omnichannel presence with over 45,000 retail stores across India.
Despite challenges, the brand recorded impressive growth in FY24, with a 20% revenue increase. With this new investment, SUGAR aims to strengthen its retail and distribution network.

Mumbai-based beauty powerhouse SUGAR Cosmetics is making headlines yet again! The direct-to-consumer (D2C) brand has secured ₹38 crore (approximately $4.5 million) in funding from its existing investors, including Anicut Equity Continuum Fund, Elevation Capital, Malabar Investment, and L Catterton. This fresh round of funding aligns with SUGAR’s valuation from its $50 million fundraising effort in 2022, pegging the company’s worth at a whopping ₹2,600–₹2,700 crore.

How SUGAR Plans to Use the New Funding

The funds are earmarked for two major growth initiatives:

1. Scaling Quench Botanics – The Rising Star of Korean Skincare

Launched in 2022 with Bollywood icon Kareena Kapoor as its brand ambassador, Quench Botanics has quickly established itself as a favorite among skincare enthusiasts. The brand, inspired by Korean beauty (K-beauty) routines, offers a wide range of products designed for Indian skin.

Quench Botanics has gained significant traction on quick-commerce platforms and e-commerce portals, riding the wave of India’s booming skincare market. With the new capital, SUGAR aims to scale this brand further, enhancing product lines, strengthening its market presence, and attracting more consumers to its unique offerings.

2. Expanding SUGAR POP – Affordable Color Cosmetics

The SUGAR POP line, launched as a budget-friendly alternative for high-quality color cosmetics, is set to grow its distribution network. SUGAR is targeting middle-income consumers who seek premium-quality products without the hefty price tag.

By widening SUGAR POP’s accessibility, the brand hopes to solidify its position as a go-to choice for affordable yet high-performance beauty products in India.

What the Leadership Says

Kaushik Mukherjee, Co-founder and COO of SUGAR Cosmetics, emphasized the company’s vision for growth in FY25:

“Our focus in FY25 is on scaling Quench Botanics and building the distribution for SUGAR POP. Both have shown strong growth potential over the past few months.”

A Closer Look at SUGAR’s Growth Journey

From its inception in 2015 as an online-only venture, SUGAR has grown into an omnichannel beauty giant with a presence in over 45,000 retail stores across India. Competing with homegrown brands like Mamaearth and Nykaa, as well as international players like Maybelline and L’Oréal, SUGAR has carved out a loyal customer base.

FY24 Performance Highlights

Despite economic headwinds, SUGAR has achieved notable milestones:

Revenue Growth: Operating revenue soared to ₹505.1 crore in FY24, a 20% jump from ₹420 crore in FY23.
Improved Profitability: Losses reduced by 11%, showcasing the brand’s ability to balance expansion with financial discipline.

The Road Ahead

In addition to scaling Quench Botanics and SUGAR POP, the company is also focused on enhancing its retail footprint and deepening its omnichannel presence. Insiders suggest that a secondary transaction is in the pipeline for 2025, potentially allowing early investors to exit and bringing in fresh capital to fuel SUGAR’s ambitious plans.

A Brief History of SUGAR Cosmetics

Founded by the dynamic husband-wife duo Vineeta Singh and Kaushik Mukherjee, SUGAR Cosmetics has raised a total of $90 million since its inception. With a vision to redefine beauty for the modern Indian consumer, the brand continues to push boundaries in innovation, quality, and accessibility.

Why This Matters

As the Indian beauty and personal care market experiences rapid growth, SUGAR Cosmetics’ strategic moves highlight its readiness to dominate both the skincare and makeup segments. Its focus on affordability and inclusivity resonates with a diverse customer base, ensuring its position as a market leader.

With bold strategies, visionary leadership, and strong investor support, SUGAR Cosmetics is poised to create even more ripples in the beauty industry. Whether you’re a fan of K-beauty-inspired skincare or on-trend color cosmetics, SUGAR’s evolving portfolio promises something for everyone.

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Rajat N

Web Designer and Digital Marketing Manager with 3+ years of experience at Vibrant Marketer. Skilled in crafting visually appealing and user-friendly websites. Also proficient in content writing and graphic design to enhance brand visibility.

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