Sugar Cosmetics, one of India’s largest and fastest-growing omnichannel beauty companies, raised a $50 million Series D led by the Asia fund of L Catterton.
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. With an extensive portfolio of high-quality products that resonate with consumers, Sugar has cultivated a loyal customer base. The company’s effective use of new-age, impact-focused content marketing has helped it develop lasting emotional connections with a diverse range of consumer cohorts.
Through a combination of fast-paced e-commerce expansion, accelerated partnerships with general and modern trade stores, as well as diligent same-store sales growth, Sugar has also established a strong omnichannel presence across India. The brand is rapidly scaling its physical presence with 40,000+ retail outlets across 550+ cities and a mission of reaching the doorstep of every makeup user in the country.
L Catterton has significant experience investing globally in the beauty and personal care space. Current and past investments in the space include Il Makiage, Intercos, The Honest Company, Tula, Bliss, Ci Flavors, Elemis, Etvos, Function of Beauty, Marubi, Merit, and Sociolla, among others.
WHY: This round of funding firmly places the company on track to further capitalize on its growth momentum in the rapidly expanding beauty and personal care market in the country. L Catterton’s expertise in building iconic consumer brands across the world and strategic relationship with LVMH will empower Sugar to embark on its next stage of growth.
IN THEIR OWN WORDS: Sugar co-founder and Chief Executive Officer Vineeta Singh said, “Consumers are at the heart of all we do. At Sugar, we are devoted to creating innovative products that meticulously cater to the preferences of women with diverse skin tones and types who believe in expressing themselves with high-quality cosmetics and skincare products that complement their inner beauty. L Catterton shares our ethos of truly understanding what matters most to consumers, and my co-founder Kaushik and I are thrilled to welcome the firm as our partner. The firm’s brand-building and value-creation capabilities will fortify our growth as we continue on our journey of delighting and over-delivering on the expectations of our customers and fans. We are also extremely grateful for our existing investors’ unwavering faith in both of us and the unstoppable team that is making our collective dream a reality.”
“We have been impressed with how Sugar has sustained its momentum of rapid growth across online and offline channels while maintaining healthy operating metrics,” commented Anjana Sasidharan, L Catterton Asia Managing Director, who will be joining the company’s board. “With a product-first mindset and deep understanding of their target consumers, Sugar’s leadership team has established a strong position in India’s cosmetics market, which is at an exciting inflection point of expansion. We look forward to partnering with the company 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 Cosmetic’s $50 million Series D fundraise valued the business at $100 million and was led by the Asia fund of L Catterton. The upsized round saw strong interest from multiple private equity funds with continued participation from existing investors A91 Partners, Elevation Capital, and India Quotient.
- This round brings the total raised to date by Sugar Cosmetics to $85.5 million.
- The brand has more than quadrupled sales over the past three years. The company’s ability to simultaneously take advantage of the proliferation of online shopping while creating a robust local ecosystem of offline distribution partners has enabled it to attract and retain shoppers across the entire spectrum from metros to Tier II and III cities.
- In February 2021, Sugar Cosmetics raised $21 million in Series C funding in a round led by Elevation Capital with existing investors A91 Partners, India Quotient participating, and strategic venture debt from Stride Ventures.
- Sugar Cosmetics’ parent company Vellvette Lifestyle Pvt. Ltd. acquired a majority stake in natural skincare and haircare brand ENN Beauty.