Sugar Cosmetics is a renowned cosmetics company that offers a diverse and exciting range of beauty products. With a strong emphasis on quality, innovation, and individuality, Sugar Cosmetics has gained a loyal following among beauty enthusiasts worldwide. It is a D2C brand founded by Vineeta Singh in 2015. As per the latest reports, its valuation is $500 million (Rs.4,133 crore). Here, we will delve into Sugar Cosmetics shareholders and the funding valuation of 2023.
As of May 2023, Sugar Cosmetics has undergone 6 funding rounds. In September 2022, Sugar Cosmetics held its latest funding round worth $87.5 million. The largest shareholders of Sugar Cosmetics include A91 Emerging Fund, India Quotient, Vineeta Singh, Kaushik Mukherjee, etc. Let’s look at the recent shareholding structure of Sugar Cosmetics-
|Shareholder’s Name||Percentage of Shares Owned|
|A91 Emerging Fund||21.72%|
The majority of the stakes are owned by A91 Emerging Fund i.e. 21.72% followed by India Quotient (19.67%) and co-founders (16.55%). But how much funds did they provide? You will get the info in the next section.
Funding so far & Valuation
Sugar Cosmetics was in the limelight because it raised a whopping amount of $50 million from L Catterton. This funding occurred along with the participation of existing investors like A91 Partners, Elevation Capital, and India Quotient. As you have read above, they are one of the significant Sugar Cosmetics shareholders.
Let’s look at the latest funding rounds of Sugar Cosmetics-
|Venture Capitalist||Funding Amount|
|L Catterton||$50 million (Rs.413.35 crore)|
|Stride Ventures||$2 million (Rs.16.53 crore)|
|A 91 Partners, Elevation Capital, India Quotient, Stride Ventures||$21 million (Rs.173.60 crore)|
|A 91 Partners, Anicut Capital, India Quotient||$12 million (Rs.99.20 crore)|
|India Quotient, RB Investments Pte. Ltd||$2.5 million (Rs.20.66 crore)|
Thus, currently, the market valuation of Sugar Cosmetics is Rs.4,133 crore.
Is Sugar Cosmetics profitable?
The query on profitability is obvious for a company with a humongous valuation. Don’t you wonder whether it is profitable or not despite being valued at Rs.4,133 crore?
You will get to know it by looking at the data in the following tables-
|Sugar Cosmetics’ Financials||Amount (in crores)|
|Market Valuation||Rs.4,133 crore|
|Revenue Earned||Rs.222 crore|
|Profit/Loss||Loss of Rs.76.2 crore|
So, here is your answer- “Sugar Cosmetics was not profitable in FY22 because it dipped in the loss of Rs.76.2 crore.” Even though it earned an appreciable amount of revenue from its numerous revenue sources. But the cash outflow in various expenses was high as well. This means the amount spent on expenditures exceeded the amount of revenue earned. Eventually, it continues to face a significant amount of loss.
Sugar Cosmetics earned revenue from the following sources-
|Revenue Sources||Amount Earned|
|Sale of Cosmetic and Beauty Products||Rs.221.8 crore|
|Export Incentives||Rs.0.03 crore|
Now look at the following expenses that led to the losses for the company “Sugar Cosmetics.”
|Cost of raw goods||Rs.66.35 crore|
|Marketing & Promotion Expenses||Rs.97.4 crore|
|Outsourced Support Services & Labor Charges||Rs.43.61 crore|
|Freight and Packaging Charges||Rs.13.25 crore|
|Employee Benefit Expenses||Rs.35.52 crore|
|Other Operating and Admin Expenses||Rs.43.73 crore|
It looks like Sugar Cosmetics has toiled hard in the fiscal year 2022. Well, that’s not the case only with this company. Apart from it, various indigenous D2C brands are witnessing a plateau in their growth. Also, with the rise of inflation and recession, consumers are spending less on non-essential items like cosmetics and apparel. This ultimately affected the financials of Sugar Cosmetics. However, Sugar Cosmetic shareholders have a firm position in the company with little change. The company is looking forward to unlocking international exposure and driving business growth further!