SUGAR Cosmetics Raises ₹145 Cr From A91 At A Near 80% Valuation Cut

D2C beauty and personal brand SUGAR Cosmetics has raised ₹144.47 Cr ($15.3 Mn) in a fresh equity round from VC firm A91 Partners, as per the startup’s MCA filings accessed by Inc42. 

It allotted 1.12 Lakh Series D7 CCPS to A91’s entity A91 Emerging Fund III at an issue price of ₹12,871. The CCPS will compulsorily convert into equity shares upon listing of the startup or one day prior to the expiry of 20 years from issue date. The startup’s board of directors passed the resolution at its meeting held on September 1. 

The startup has raised the fresh capital at a significant valuation cut. Its post-money valuation with the round, which seems to be its Series D equity round, is in the range of ₹550-600 Cr ($58-64 Mn), as per Inc42’s calculations. 

This implies a hefty 75-80% cut from the ₹2,600-2,700 Cr valuation it commanded back when it had raised funds in November 2024. The startup’s pre-money valuation for the round stood at ₹433.6 Cr. SUGAR’s peak valuation was about ₹3,000 Cr ($500 Mn) back in 2022. 

Inc42 has reached out to the startup for their response on the development. The story would be updated in case they respond.

Notably, SUGAR’s net loss for the fiscal year FY25 nearly doubled to ₹135 Cr from ₹68.4 Cr. Its operating revenue also plunged by about 20% to ₹404.4 Cr in FY25, compared to ₹505.1 Cr in FY24. 

At the same time, its EBITDA losses more than doubled to ₹116 Cr in FY25 as against ₹48.5 Cr in FY24. 

To note, SUGAR is yet to report its financial performance for the fiscal year FY26. 

“The company has demonstrated a sustained and worsening pattern of financial deterioration over the past two financial years,” wrote Sayali Deshkar, the registered valuer, in a valuation report attached with the filings dated June 30, 2026. 

SUGAR’s economics were impacted mainly by its aggressive offline expansion. As per an ET report, the startup had to shut 30-40% of the physical stores that it opened due to the losses incurred per store. 

Inc42 has reached out to the company with questions and the story will be updated with their response. 

Founded in 2015 by the husband-wife duo of Vineeta Singh and Kaushik Mukherjee, Mumbai-based SUGAR sells beauty and personal care products on its own website, in physical stores, and through ecommerce platforms. 

To date, the startup has raised $90 Mn from investors like Elevation Capital, A91 Partners, Anicut Capital, and IndiaQuotient. 

SUGAR operates four brands – SUGAR, POP, ENN, and Quench Botanics – and competes with listed companies like Nykaa and Mamaearth as well as the likes of Renee Cosmetics. 

The stakes are high with India entering the D2C 3.0 era where D2C brands are expected to command more than two-thirds of the overall gross merchandise value (GMV) across ecommerce by 2031. 

Beauty and personal care is one of the most funded segments within the D2C ecosystem, with this space drawing over $1.1 Bn in funding across 201 deals between 2015 and Q1 FY26. 

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