SUGAR Cosmetics Raises US $2 Mn in Debt Round Led by Stride Ventures
SUGAR Cosmetics – a rapidly-growing colour cosmetics brand focussed on amongst Gen Z and millennials has raised US$2 Million in a debt round led by leading venture debt fund, Stride Ventures.
The fund has partnered with a private bank for this deal and is committed to being a strategic partner in SUGAR’s growth journey with their customized offerings and deep relationships across banks and corporates. This is said to be Stride Ventures’ tenth investment from its maiden fund and it also marks its first foray into the lifestyle segment. Apart from a ~6X jump in revenues in 2 years, SUGAR’s hybrid approach, with a robust online as well as offline presence across 2,400 outlets in over 130 cities and strong brand loyalty is said to have made it an attractive proposition. With the homegrown cosmetics brand bouncing back past its pre-COVID peak, these funds are expected to be strategically deployed to keep pace with working capital and inventory requirements, and fuel aggressive growth through the peak sales season.
Launched in 2015 by IIM-Ahmedabad graduates Vineeta Singh and Kaushik Mukherjee, the SUGAR is a cruelty-free and content-led beauty brand that targets the younger Indian demographic through its range of affordable premium products. In FY20, the company claims to have clocked net revenues of INR 105 Crore. Their offerings range from make-up products specially-suited for Indian skin tones to everyday skincare products that are easy to use.
On the funding, Ishpreet Gandhi – Founder and Managing Partner, Stride Ventures, said “In a fiercely competitive landscape, SUGAR has managed to stand apart in a short span of time. Their branding, market strategy and offering of affordable premium products greatly appeal to the growing younger demographic. The brand has quickly become a household name in the lifestyle segment and we are excited to partner with them in their journey.”
Vineeta Singh – Co-founder and CEO, SUGAR Cosmetics, added, “SUGAR plays in a high gross margin category which makes debt a fantastic choice for us. With superior product-market fit and long-term growth appetite, we are excited about working with Stride and their partner private bank and announce US $2M as the first tranche of the Series C funding that we hope to close later this year.”
Since its inception, Stride Ventures is known to have focused on investing in market leaders across sectors. Stride Ventures launched its maiden fund in 2019 and plans to invest in 25-30 startups for Stride Venture India Fund I.