Sugar Cosmetics, once a poster child of India’s D2C beauty wave, has raised Rs 144.5 crore from existing investor A91 Partners – at a valuation that sits about 75% below its 2022 peak.
The board approved the allotment of 1,12,248 Series CCPS at an issue price of Rs 12,871 per share, according to regulatory filings. A91 Partners subscribed to the entire issue and will hold around 19.97% in the company after the round.
Valuation reset to Rs 755 crore
Based on the allotment, Entrackr estimates the transaction values Sugar at around Rs 755 crore post-money. That is a steep fall from the roughly Rs 3,000 crore valuation the company commanded in 2022, when it raised $50 million in a Series D round led by L Catterton.
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On Friday, ET reported the firm was raising Rs 140-150 crore from A91 at a valuation of Rs 500-600 crore.
Early investors look for exits
The fresh primary round is taking place as some existing investors explore secondary exits. Sources said investors are looking to sell stakes worth up to Rs 150 crore. Some early backers have been approaching buyers at steep discounts to Sugar’s peak valuation.
Entrackr has learnt that a consulting firm has been pitching Sugar shares at a fraction of the peak valuation, with a minimum transaction size of around Rs 25 crore.
What went wrong
Sugar’s business has lost momentum since its high point. Revenue declined 20% to Rs 404 crore in FY25 from Rs 505 crore in FY24, while net loss almost doubled to Rs 135 crore from Rs 68 crore.
Founded by Vineeta Singh and Kaushik Mukherjee, Sugar started as an online-first beauty brand before building a sizable offline presence. It sells makeup and personal care products through marketplaces, its own platform and a network of retail outlets.
The road ahead
The latest round is a clear reset in investor expectations. A91 is putting fresh capital into the business even as others look for exits at sharply lower valuations.
Sugar’s brand recognition and distribution network give it room to recover if it can sharpen its product portfolio and return to growth. For early investors, the priority has shifted from waiting for a large exit to finding liquidity at a fraction of the earlier valuation.