Mumbai: Omnichannel beauty company, SUGAR Cosmetics, announced on Tuesday the close of its $50 million Series D fundraise led by the Asia fund of L Catterton, global consumer-focused private equity firm. The upsized round saw strong interest from multiple private equity funds with continued participation from existing investors – A91 Partners, Elevation Capital and India Quotient, the company said in a statement.
Sharing the news on LinkedIn, SUGAR Cosmetics CEO Vineeta Singh wrote: Funding isn't a milestone, but when it also coincides with the biggest month in sales for SUGAR Cosmetics, it's time to express a ton of gratitude - for our crazy team, our passionate customers and of course the best set of investors ever!
“Welcoming L Catterton the world's largest consumer focused PE fund to our cap table along with A91 Partners, IndiaQuotient and Elevation Capital. Excited about having another feisty woman on the board, Anjana Sasidharan and can't wait to build together the most loved beauty brand for young India,” she further added.
The country’s beauty and personal care market has expanded considerably over the past five years, and is expected to reach approximately $21 billion in 2025. SUGAR stated that it has quadrupled its sales over the past five years, adding that it deploys new-age, impact-focused content marketing to develop lasting emotional connections.
The cosmetics company said in a statement that its proliferation of online shopping and the creation of a robust local ecosystem of offline distribution partners has enabled it to attract customers from metros to Tier I and II cities. It added that the rising adoption of online shopping and greater product penetration in secondary cities are also driving the market’s enlargement.
CEO Vineeta Singh said, “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,” further adding that the investor’s brand-building and value creation capabilities will fortify its growth.
L Catterton Asia managing director Anjana Sasidharan said, “We have been impressed with how SUGAR has sustained its momentum of rapid growth across online and offline channels while maintaining healthy operating metrics… 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.”
Known for being popular among Gen Z and millennials, the brand aims to further capitalise on its growth momentum in the rapidly growing beauty and personal care market. SUGAR Cosmetics has been scaling its physical presence with over 40,000 retail outlets across over 550 cities.
