Archive · 7 Sep 2026
SUGAR Cosmetics Co-founder Addresses Sharp Valuation Decline Concerns
SUGAR Cosmetics recently raised new money for its business.
However, the company was valued much lower than it had been in November 2024.
Co-founder Vineeta Singh confirmed that the lower valuation was real.
She said she and co-founder Kaushik Mukherjee are still committed to building the company.
The company had a difficult financial year, with lower revenue and a larger loss.
SUGAR raised about Rs 144.5 crore from A91 Partners.
Singh said media attention brings both praise and criticism.
She encouraged employees to keep working hard and said the company’s story is not over yet.
SUGAR Cosmetics raised about Rs 144.5 crore from existing investor A91 Partners at a valuation of Rs 550-600 crore.
Co-founder Vineeta Singh acknowledged the lower valuation and said she and Kaushik Mukherjee remain focused on building the company.
The latest valuation is sharply below the estimated Rs 2,600-2,700 crore valuation recorded in November 2024.
SUGAR’s operating revenue fell about 20% to Rs 404.4 crore in FY25, while its net loss widened to Rs 135 crore.
Singh said media scrutiny was part of building a public company and urged employees to focus on execution.
- Who
- SUGAR Cosmetics, co-founders Vineeta Singh and Kaushik Mukherjee, and investor A91 Partners.
- What
- SUGAR Cosmetics raised about Rs 144.5 crore at a valuation of Rs 550-600 crore, substantially below its prior reported valuation.
- When
- The latest funding round followed a November 2024 valuation of about Rs 2,600-2,700 crore; the company’s financial figures refer to FY25.
- Where
- SUGAR Cosmetics is based in Mumbai and sells products through online, e-commerce and retail channels.
- Why
- The company raised fresh capital amid weaker financial performance and is working to strengthen its business.
Concerns Over Valuation
Founder’s Confidence
Meaning of the lower valuation
Concerns Over Valuation
The funding round’s valuation fell sharply from the level reported in November 2024, raising concerns about SUGAR Cosmetics’ financial performance and future.
Founder’s Confidence
Vineeta Singh acknowledged the lower valuation but said she and Kaushik Mukherjee accepted it because they remain focused on building the company.
Interpretation of media coverage
Concerns Over Valuation
Reports emphasized the valuation decline, falling revenue and widening losses, presenting a difficult picture for the company.
Founder’s Confidence
Singh said media scrutiny is part of public success, with companies receiving both applause and criticism, and argued that the company’s story is not finished.
- Latest funding
- About Rs 144.5 crore
- Latest valuation
- Rs 550-600 crore
- Previous reported valuation
- About Rs 2,600-2,700 crore in November 2024
- FY25 operating revenue
- Rs 404.4 crore, down from Rs 505.1 crore
- FY25 net loss
- Rs 135 crore, compared with Rs 68.4 crore in FY24
- FY25 EBITDA loss
- About Rs 116 crore, compared with Rs 48.5 crore in FY24
- Funding investor
- A91 Partners