D2C beauty brand SUGAR Cosmetics raised ₹144.47 crore ($15.3 million) in a fresh equity round from VC firm A91 Partners, according to the startup’s MCA filings accessed by inc42.com. The Series D7 CCPS were allotted at ₹12,871 per share, with the board passing the resolution on September 1. The round values the company at ₹550-600 crore ($58-64 million), marking a 75-80% valuation drop from its November 2024 raise.
The fresh capital infusion involved issuing 1.12 lakh Series D7 compulsorily convertible preference shares to A91 Emerging Fund III, a fund under A91 Partners. These shares will convert into equity either upon the startup’s listing or 20 years after issuance. The pre-money valuation for this round stood at ₹433.6 crore. SUGAR’s peak valuation was about ₹3,000 crore ($500 million) in 2022, highlighting the steep correction in its market value.
The valuation cut follows financial challenges for SUGAR Cosmetics, which saw its net loss nearly double to ₹135 crore in FY25 from ₹68.4 crore in FY24. Operating revenue declined by around 20% to ₹404.4 crore in FY25 from ₹505.1 crore the previous year. EBITDA losses more than doubled to ₹116 crore in FY25 compared to ₹48.5 crore in FY24. These figures underscore the pressure on the startup amid a tough market environment for D2C beauty brands.
SUGAR Cosmetics’ board approved the funding round on September 1, 2026, marking a significant reset in valuation after years of rapid growth. The company has yet to report its financials for the current fiscal year, with investors closely monitoring its recovery trajectory.