Sugar Cosmetics Raises Rs 144.5 Crore from A91 Partners as Valuation Falls 75% from Peak
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Khushi Jain
- September 5, 2026
Sugar Cosmetics, once among the better-known names in India’s D2C beauty wave, has raised Rs 144.5 crore from existing investor A91 Partners as the company continues to face pressure on revenue and profitability. The funding comes as some early investors are also exploring buyers for their stakes at steep discounts to the company’s peak valuation.
According to regulatory filings, the board approved the allotment of 1,12,248 Series CCPS at an issue price of Rs 12,871 per share, raising Rs 144.5 crore. A91 Partners subscribed to the entire issue.
Based on the allotment and resulting shareholding, Entrackr estimates that the transaction values Sugar at around Rs 755 crore post-money. This represents a 75% decline from its peak valuation of around Rs 3,000 crore. Following the new round, A91 Partners will hold around 19.97% in the company.
On Friday, ET reported that Sugar was raising Rs 140-150 crore from A91 at a valuation of Rs 500-600 crore.
Existing Investors Explore Secondary Exits
The latest primary funding round comes as some existing investors explore secondary exits. Sources said investors are looking to sell stakes worth up to Rs 150 crore. Some early backers have been approaching potential buyers at steep discounts to Sugar’s peak valuation.
Entrackr has also learnt that a consulting firm has been pitching Sugar shares at a fraction of its peak valuation, with a minimum transaction size of around Rs 25 crore. The discussions highlight the extent of the valuation correction since the peak of the D2C funding cycle.
Sugar was valued at around $400 million, or roughly Rs 3,000 crore, in 2022 when it raised $50 million in a Series D round led by L Catterton. At the time, the company was expanding its offline retail footprint and had emerged as a prominent youth-focused cosmetics brand.
Revenue Declines, Losses Rise
The company’s business has since lost momentum. Sugar’s revenue declined 20% to Rs 404 crore in FY25 from Rs 505 crore in FY24. Its net loss almost doubled to Rs 135 crore from Rs 68 crore.
Founded by Vineeta Singh and Kaushik Mukherjee, Sugar started as an online-first beauty brand before building a sizable offline presence. The company sells makeup and personal care products through marketplaces, its own platform and a network of retail outlets.
The latest funding round marks a significant shift from Sugar’s 2022 fundraise. A91 Partners, which already held roughly a fifth of Sugar, is investing fresh capital even as other investors seek exits at sharply lower valuations.
For Sugar, the funding provides capital to stabilise the business while also reflecting a reset in investor expectations. The company now needs to rebuild revenue, improve profitability and demonstrate stronger unit economics.
The reset does not necessarily spell the end of Sugar’s growth story. Its brand recognition and distribution network give it room to recover if it can sharpen its product portfolio, improve economics and return to growth.
For early investors, the focus appears to have shifted from waiting for a large exit to finding liquidity at a fraction of Sugar’s earlier valuation. The latest round reflects the sharp change in expectations while leaving Sugar with the task of proving it can bounce back.
FAQs
1. How much funding has Sugar Cosmetics raised?
Sugar Cosmetics has raised Rs 144.5 crore from existing investor A91 Partners.
2. What is Sugar Cosmetics’ estimated post-money valuation after the latest round?
Entrackr estimates Sugar’s post-money valuation at around Rs 755 crore.
3. How much has Sugar’s valuation fallen from its peak?
Sugar’s estimated valuation is around 75% below its peak valuation of around Rs 3,000 crore.
4. What was Sugar Cosmetics’ revenue in FY25?
Sugar Cosmetics reported revenue of Rs 404 crore in FY25, down 20% from Rs 505 crore in FY24.
5. Who founded Sugar Cosmetics?
Sugar Cosmetics was founded by Vineeta Singh and Kaushik Mukherjee.
