Sugar Cosmetics closes USD 50 million series D funding led by L Catterton

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Sugar Cosmetics (“SUGAR”), one of India’s largest omnichannel beauty companies and a cult favorite amongst Gen Z and Millennial consumers, recently announced the close of its USD 50 million Series D fundraise led by the Asia fund of L Catterton, one of the largest global consumer-focused private equity firm. The upsized round saw strong interest from multiple private equity funds with continued participation from existing investors – A91 Partners, Elevation Capital, and India Quotient – firmly placing the company on track to further capitalize on its growth momentum in the rapidly expanding beauty and personal care market in the country.

L Catterton’s expertise in building iconic consumer brands across the world and strategic relationship with LVMH will empower Sugar to embark on its next stage of growth amid the expansion of India’s beauty and personal care market. Driven by consumers who are increasingly making cosmetics and skincare a part of their daily repertoire and experimenting with different types of products, the country’s beauty and personal care market has expanded considerably over the past five years and is expected to reach approximately USD 21 billion in 2025. Rising adoption of online shopping and greater product penetration in secondary cities are also contributing to the market’s enlargement.

With an extensive portfolio of high-quality products that resonate with consumers, Sugar has cultivated a loyal customer base and has more than quadrupled sales over the past three years. The company’s effective use of new-age, impact-focused content marketing has helped it develop lasting emotional connections with a diverse range of consumer cohorts.

Through a combination of fast-paced e-commerce expansion, accelerated partnerships with general and modern trade stores, as well as diligent same-store-sales growth, SUGAR has also established a strong omnichannel presence across India. The company’s ability to simultaneously take advantage of the proliferation of online shopping while creating a robust local ecosystem of offline distribution partners has enabled it to attract and retain shoppers across the entire spectrum from metros to Tier II and III cities.

Sugar Co-Founder and Chief Executive Officer Vineeta Singh said, “Consumers are at the heart of all we do. At Sugar, we are devoted to creating innovative products that meticulously cater to the preferences of women with diverse skin tones and types who believe in expressing themselves with high-quality cosmetics and skincare products that complement their inner beauty. L Catterton shares our ethos of truly understanding what matters most to consumers, and my co-founder Kaushik and I are thrilled to welcome the firm as our partner. The firm’s brand-building and value-creation capabilities will fortify our growth as we continue on our journey of delighting and over-delivering on the expectations of our customers and fans. We are also extremely grateful for our existing investors’ unwavering faith in both of us and the unstoppable team that is making our collective dream a reality.”

“We have been impressed with how Sugar has sustained its momentum of rapid growth across online and offline channels while maintaining healthy operating metrics,” commented Anjana Sasidharan, L Catterton Asia Managing Director, who will be joining the company’s board. “With a product-first mindset and deep understanding of their target consumers, SUGAR’s leadership team has established a strong position in India’s cosmetics market, which is at an exciting inflection point of expansion. We look forward to partnering with the company to thoughtfully unlock international exposure and drive further growth, leveraging our experience of working with over 20 beauty and personal care companies in L Catterton’s portfolio across the Americas, Europe, and Asia.”

L Catterton has significant experience investing globally in the beauty and personal care space. Current and past investments in the space include Il Makiage, Intercos, The Honest Company, TULA, Bliss, Ci FLAVORS, ELEMIS, ETVOS, Function of Beauty, Marubi, MERIT, and Sociolla, among others.

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