- The company will use the funding to strengthen its research & development and expand distribution capabilities.
- Investors including Elevation Capital, A91 Partners, and India Quotient participated in the funding round.
- The latest fundraise has doubled the valuation of the company to more than $100 million.
Mumbai-based cosmetic eCommerce brand Sugar Cosmetics has closed its Series C funding round after raising $21 million (or about Rs 153 crore) led by venture capital firm Elevation Capital.
Early investors A91 Partners and India Quotient also participated in the funding round. The latest fundraise has doubled down the valuation to more than $100 million after it had raised $2 million in October 2020 at around $50-60 million valuation.
Besides Sugar Cosmetics, Elevation Capital has also invested in several other consumer brands such as FirstCry, High Street Essentials, SENCO Gold, Yoga Bar, among others.
The company aims to utilize the latest funding to strengthen its research & development (R&D), focus on content production, and expand product distribution capabilities.
Additionally, It will look forward to doubling its current Rs 200 crore revenue run rate in the next 12 months. To meet the company’s target growth, it aims to sell products through 40,000 retail outlets in the next 12-18 months.
Following the current funding round, Sugar Cosmetics has raised over $50 million in funding from investors, including A91 Partners, RB Investments, Anicut Capital, Stride Ventures, and Elevation Capital (formerly SAIF Partners).
Founded in 2012 by IIM Ahmedabad graduates Kaushik Mukherjee and Vineeta Singh, Sugar Cosmetics is an online direct-to-consumer brand that sells cosmetic products such as Lipstick, Moisturizer, Eyeliners, Lip Care, etc. It currently sells its products through 10,000 retail outlets.
Due to the COVID-19 resultant lockdown, the company has witnessed over 60% growth in online orders. It claims to generate over Rs 24 crore in revenue during the November 2020 period. However, The company also reported a loss of Rs 5 crore in the first quarter of FY-21.
Commenting on the latest fundraise, Vineeta Singh, CEO of Sugar Cosmetics, told ET, “We feel that over the next five years, 80-85% of the market will continue to shop offline and hence want to expand our retail presence in the country.”
The company has also partnered with other e-commerce platforms including Amazon, Myntra, Flipkart, and Nykaa. While Bluedart, ExpressBees, FedEx, among others handle product delivery of Sugar Cosmetics.