SUGAR Cosmetics co-founder and CEO Vineeta Singh has responded to criticism over the beauty startup's steep valuation cut, saying the company remains focused on building for the long term.
In an Instagram message, Singh said, “Kaushik and I are here to build the company. All I will say is, picture abhi baaki hai.”
Her statement came after SUGAR completed a fundraise that reportedly slashed the company's valuation by up to 80%. Referring to the flak, Singh said it is the media's "job to put out the most juciest version of the story". She added that the media has been "extra generous" to the company for the last five years, and they "do get to tear us down with equal intensity".
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Her comments come after SUGAR raised nearly Rs 145 crore in a fresh equity funding round from venture capital firm A91 Partners at a valuation that marks a sharp reset from its previous funding round, according to reports.
As per MCA filings accessed by Inc42, SUGAR Cosmetics raised Rs 144.47 crore by allotting 1.12 lakh Series D7 compulsorily convertible preference shares to A91 Emerging Fund III at an issue price of Rs 12,871 per share.
The latest round values the company at an estimated Rs 550-600 crore post-money, implying a 75-80% decline from the Rs 2,600-2,700 crore valuation it commanded when it last raised funds in November 2024.
SUGAR's peak valuation was around Rs 3,000 crore in 2022.
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The valuation reset comes against a backdrop of deteriorating financial performance. SUGAR's operating revenue fell nearly 20% year-on-year to Rs 404.4 crore in FY25 from Rs 505.1 crore a year earlier.
Its net loss almost doubled to Rs 135 crore from Rs 68.4 crore, while EBITDA losses more than doubled to Rs 116 crore.
A valuation report dated June 30, 2026, noted a “sustained and worsening pattern of financial deterioration” over the previous two financial years.
The company's aggressive offline expansion has also weighed on its economics, with reports suggesting it shut several stores after losses at individual outlets.
Founded by Singh and Kaushik Mukherjee, SUGAR sells beauty and personal-care products through its website, retail outlets and e-commerce platforms.
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