[Funding alert] SUGAR Cosmetics raises $2M debt, Stride Ventures leads the round
Leading venture debt fundannounced on Wednesday that it led the recent funding round in Mumbai-based . The Mumbai-based cosmetics startup has raised $2 million in debt in the first tranche of the Series C funding round.
Ishpreet Gandhi, Founder and Managing Partner at 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..."
According to a statement issued by Stride Ventures, the venture debt fund has partnered with a leading private bank for the deal. Additionally, Stride Ventures will be a strategic partner in SUGAR's growth journey, with its customised offerings and relationships across banks and corporates.
SUGAR was founded by IIM-Ahmedabad graduates Vineeta Singh and Kaushik Mukherjee in 2015. It offers make-up products to suit the Indian skin tones. The cosmetics startup has recorded about 6x growth in its revenues in the last two years. The cruelty-free brand clocked net revenue worth Rs 105 crore in FY 2020 itself. SUGAR works on a hybrid model with both offline and online presence across 2,400 outlets in over 130 cities.
Co-founder and CEO Vineeta says, "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 with Stride and their partner private bank... ”
SUGAR is backed by A91 Partners, IndiaQuotient and others. It has over six lakh app downloads and has recorded over 2.5 million sales on the app in one day, pre-COVID.
SUGAR is Stride Venture's tenth investment from its maiden fund and its the first time that it is foraying into the lifestyle segment. Some of its other portfolio companies include, , . , and , among others.
Edited by Megha Reddy