On Tuesday, SUGAR Cosmetics, an omnichannel cosmetics brand, revealed that it had concluded a $50 million Series D investment round headed by L Catterton’s Asia fund, a consumer-focused private equity firm. According to the firm, the increased round received excellent interest from numerous private equity groups, as well as sustained interest from current backers A91 Partners, Elevation Capital, and India Quotient.
SUGAR plans to capitalize on its success in the beauty and personal care industry. The company forecasts that the beauty and personal care sector will reach $21 billion by 2025. According to the report, online shopping and product penetration in secondary cities also contribute to industry development. In five years, SUGAR quadrupled sales. It employs content marketing with an emphasis on generating emotional connections. Online shopping and a robust local ecosystem of offline distribution partners have helped the cosmetics brand acquire customers in Tier I and Tier II cities as well as metropolitan areas.
CEO Vineeta Singh said, “At SUGAR, we are committed to developing unique products that appeal to the preferences of women with varied skin tones and types who believe in expressing their inner beauty through the use of high-quality cosmetics and skincare products. My co-founder Kaushik and I are happy to welcome L Catterton as a partner, as the firm shares our commitment to understanding what matters most to customers; moreover, the investor’s brand-building and value-generating skills will strengthen the company’s development.
Anjana Sasidharan, managing director of L Catterton Asia, said, “We are delighted with how SUGAR has maintained its high development momentum across online and offline channels while maintaining good operational metrics… With a product-first mentality and a profound knowledge of their target customers, SUGAR’s leadership team has developed a strong position in India’s cosmetics sector, which is poised for rapid growth.
With over 40,000 retail locations in over 550 cities, SUGAR Cosmetics is quickly expanding its physical presence.