SUGAR Cosmetics, the popular Indian beauty and makeup brand co-founded by Vineeta Singh, is facing a major setback after its valuation reportedly dropped by nearly 80% from its previous peak. The company has raised around ₹145 crore from existing investor A91 Partners. However, the latest funding round reportedly values SUGAR Cosmetics at only around ₹500–600 crore, compared with its earlier valuation of approximately ₹2,600–3,000 crore. The sharp decline highlights the growing challenges faced by the Indian beauty and direct to consumer (D2C) industry.
SUGAR Cosmetics has also been struggling with weaker financial performance. The company operating revenue reportedly declined by around 20% to ₹404.4 crore in FY25, while its net loss almost doubled to approximately ₹135 crore. The funding is expected to provide the company with additional capital as it works to strengthen its business and compete in India increasingly crowded beauty market. SUGAR competes with several established and emerging brands that are aggressively investing in online sales, retail expansion and new product launches.
The valuation decline has attracted considerable attention, particularly because of Vineeta Singh public profile through Shark Tank India. Responding to criticism surrounding the development, Singh indicated that the company journey is far from over. While the latest numbers raise concerns, the new funding could give SUGAR Cosmetics an opportunity to improve its financial performance and rebuild investor confidence. The coming years will be crucial in determining whether the brand can regain its earlier momentum.
