Sugar Cosmetics Raises ₹145 Crore, Valuation Drops 75%
What Happened
Sugar Cosmetics has raised ₹144.5 crore from existing investor A91 Partners through a fresh funding round. However, the deal values the beauty brand at around ₹755 crore, nearly 75% lower than its peak valuation of about ₹3,000 crore in 2022. The fundraise comes after the company reported a 20% decline in revenue to ₹404 crore and a near doubling of net losses to ₹135 crore in FY25.
Key Takeaways
The funding provides Sugar Cosmetics with fresh capital and signals continued investor support from A91 Partners. However, the sharp valuation markdown highlights the ongoing reset in startup valuations as investors increasingly focus on sustainable growth, profitability, and stronger business fundamentals.