India’s digital-first cult beauty brand Sugar Cosmetics raised $21 million in Series C funding from Elevation Capital and existing investors to fuel omni-channel growth.
WHO: Sugar Cosmetics was founded in 2015 by Vineeta Singh and Kaushik Mukherjee as a direct-to-consumer beauty brand with products specifically created to suit Indian skin tones. While e-commerce still contributes to half of the business’ revenue, Sugar has built an omni-channel distribution network that includes 10,000+ retail outlets across 130+ cities, taking its award-winning range to the doorstep of beauty enthusiasts across the country as one of the fastest-growing premium beauty brands in India.
WHY: 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 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.
IN THEIR OWN WORDS: Speaking on the brand’s growth, Vineeta Singh, co-founder and CEO, Sugar Cosmetics, said, “With Sugar’s 6X jump in revenues over the last two fiscal years, we are extremely grateful to all our 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% 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.”
Speaking on this investment, Deepak Gaur, Partner, Elevation Capital said, “In a short period of time, Sugar has done a tremendous job in establishing itself as the go-to cosmetics brand for modern day Indian women. By starting out digital-first and obsessing over the needs of their consumers, Sugar has not only developed a playbook to create better products suited for the Indian market but has also enhanced awareness about various make-up products through its social media channels. We are super excited to be a part of the next chapter of their journey.”
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