Gurugram-based digital health startup Sugar.fit has reported a strong financial performance for the financial year ended March 2025 (FY25), registering sharp growth in revenue and a marginal reduction in losses. The latest financial data reflects the company’s steady expansion in India’s rapidly growing health-tech and chronic care segment, especially in diabetes management.
Strong Revenue Growth Driven by Core Services
During FY25, Sugar.fit recorded revenue from operations of ₹66.5 crore, up from ₹37.5 crore in FY24, translating into a healthy 77% year-on-year growth. Based on Entrackr, including other income of ₹8.5 crore, the company’s total income reached ₹75 crore in FY25, compared to ₹42 crore in the previous fiscal.
The company earns its revenue entirely from its service-based offerings, primarily focused on structured diabetes care programs. These programs combine digital tracking, personalised diet plans, medical supervision, and health coaching. With lifestyle diseases like diabetes on the rise across India, Sugar.fit has been able to capitalise on growing awareness and acceptance of tech-enabled health solutions among urban and semi-urban consumers.
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Expense Growth Remains in Check
Alongside rising revenues, Sugar.fit’s overall expenditure increased by about 31.5% to ₹117 crore in FY25, compared to ₹89 crore in FY24. Employee benefit expenses rose 18% year-on-year to ₹33 crore, reflecting hiring and retention costs as the company scales operations.
One of the sharpest increases was seen in the cost of materials consumed, which jumped to ₹21 crore in FY25 from ₹0.6 crore a year earlier. Advertising and promotional expenses remained steady at ₹34 crore and continued to be one of the largest cost components, accounting for nearly one-third of the total expenditure. Other operating expenses, including professional fees and administrative costs, also contributed to the overall spend.
Despite the increase in costs, Sugar.fit showed improvement in operational efficiency. The company spent ₹1.76 to earn every rupee of revenue in FY25, compared with ₹2.37 in FY24, indicating better cost management and improved unit economics.
Losses Narrow as Efficiency Improves
Sugar.fit managed to reduce its net losses by around 11% in FY25. The company reported a net loss of ₹42 crore, compared to ₹47 crore in FY24. While the business is still loss-making, the narrowing losses suggest gradual progress toward financial discipline and sustainable scaling.
Key profitability indicators, however, remain under pressure. The company reported a negative return on capital employed and continued EBITDA losses, highlighting that profitability is still some distance away. Cash and bank balances also declined sharply to ₹1 crore at the end of FY25 from ₹5.6 crore a year earlier, reflecting ongoing investments in growth and operations.
Funding Background and Business Outlook
Till date, Sugar.fit has raised close to $26 million from investors, which has helped fund product development, marketing, and team expansion. The company operates in a highly competitive digital health ecosystem, where customer acquisition costs, pricing sensitivity, and long-term user retention remain key challenges.
Looking ahead, Sugar.fit’s growth trajectory will likely depend on its ability to scale responsibly while improving margins and controlling costs. With India witnessing a surge in demand for preventive and chronic care health services, the company remains well-positioned to benefit from this long-term trend. FY25’s performance signals progress, but consistent execution will be crucial for Sugar.fit as it works towards profitability in the coming years.