SUGAR Cosmetics co-founder and CEO Vineeta Singh has addressed concerns over the beauty brand's sharply reduced valuation following its latest funding round, saying that she and co-founder Kaushik Mukherjee remain focused on building the company for the long term.
In an Instagram post, Singh acknowledged that SUGAR had raised a "large round" at a lower valuation and pushed back against concerns raised over the development. "Now the truth: yes we did raise a large round, yes it is at a worse valuation because Kaushik and I are here to build," she said.
Responding to messages from friends, customers and partners asking her not to pay attention to media reports, Singh said criticism was part of being in the public eye. She added that the media had been supportive of SUGAR over the past five years and that criticism was also part of the journey.
"If you get the applauses, you also get the boos. That's all part of the deal and it's absolutely fine," Singh said.
Ending her message on an optimistic note, the SUGAR co-founder said, "Picture abhi baaki hai mere dost," signalling that she believes the company's story is far from over.
SUGAR Cosmetics valuation cut
SUGAR Cosmetics recently raised around Rs 144.5 crore from existing investor A91 Partners. The latest funding round reportedly valued the Mumbai-based company at around Rs 550 crore to Rs 600 crore, significantly lower than its previous valuations.
The latest valuation represents a decline of around 75-80% from the Rs 2,600-2,700 crore valuation at which SUGAR had raised funds in November 2024. The company's peak valuation was around Rs 3,000 crore in 2022.
The sharp valuation reset comes amid financial pressure at the company. SUGAR's operating revenue fell around 20% to Rs 404.4 crore in FY25 from Rs 505.1 crore in FY24, while its net loss nearly doubled to Rs 135 crore from Rs 68.4 crore.
The company has also faced challenges linked to aggressive offline expansion, rising losses and increased competition in the beauty and personal care market. The latest funding, however, is expected to provide additional working capital, particularly to support the growth of its skincare brand Quench.
Speaking to her employees, Singh urged them to remain focused on execution and encouraged the team to continue working through the challenges.
Despite the steep valuation cut, Singh's latest message indicates that the founders remain committed to rebuilding the business and pursuing its next phase of growth.
