D2C Personal Care Brand SUGAR Cosmetics Bags $50 Mn To Deepen Market Penetration

Mumbai-based D2C cosmetics brand SUGAR Cosmetics has closed its $50 Mn Series D fundraise led by the Asia fund of L Catterton. The funding round saw participation from existing investors such as A91 Partners, Elevation Capital and India Quotient as well.

Following the fundraise, L Catterton Asia’s managing director Anjana Sasidharan will be joining the company’s board of directors.

Founded in 2015 by Vineeta Singh and Kaushik Mukherjee, SUGAR Cosmetics started its journey as a D2C brand, with an online platform. However, since then, it has pivoted to an omnichannel model and claims to have more than 40,000 retail outlets across more than 550 cities in India. SUGAR Cosmetics markets products in the lips, eyes, face, nails & skin categories.

SUGAR Cosmetics competes with startups such as Mamaearth, Nykaa and WOW Skin as well as FMCG giants such as Unilever and L’Oreal. The startup claims to have customers across the spectrum of Indian cities – from metros to Tier 2+ cities – aided by its online presence and its offline distribution network.

The funding round comes more than a year after SUGAR had raised $21 Mn in a Series C round, led by Elevation Capital, A91 Partners and India Quotient.

SUGAR’s cofounder and CEO Vineeta Singh said, “Consumers are at the heart of all we do.” She added, “L Catterton shares our ethos of truly understanding what matters most to consumers, and my cofounder Kaushik and I are thrilled to welcome the firm as our partner.”

Commenting on the funding round, Sasidharan said, “We look forward to partnering with the company [SUGAR] to thoughtfully unlock international exposure and drive further growth, leveraging our experience of working with over 20 beauty and personal care companies in L Catterton’s portfolio across the Americas, Europe, and Asia.”

SUGAR Cosmetics reported total revenue of INR 127.8 Cr in FY21, 21.6% higher than FY20. At the same time, the D2C brand’s operating revenue expanded 22% to INR 126.3 Cr in FY21. The omnichannel cosmetics brand also managed to narrow its losses in FY21, reporting an INR 21 Cr loss, down 25% from INR 28.2 Cr reported in FY20.

According to Statista, India’s beauty and personal care market, estimated at $26.02 Bn in 2022, is projected to reach $31.25 Bn by 2026, growing at a CAGR of 4.64%.

D2C is emerging as a significant sub sector within the larger ecommerce market in India. The country’s total ecommerce opportunity stands at $400 Bn by 2030. 

In the meanwhile, a couple of SUGAR’s competitors have recently raised funds or made acquisitions in the segment. Recently, Mamaearth has added two new brands to its portfolio, skincare brand Dr. Sheth’s and hair colour brand BBLUNT. On the other hand, WOW Skin Science has raised an undisclosed amount from GIC.

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