IIM Ahmedabad Couple-Led SUGAR Cosmetics Reports Rs 412 Cr Revenue in FY25 Amid Rising Losses
SUGAR Cosmetics, a prominent player in the Indian beauty industry, has reported a revenue of Rs 412 crore for the fiscal year 2025 (FY25). This figure marks a significant decline of 20% compared to the previous year’s revenue of Rs 515.5 crore. The company’s financial statements, sourced from the Registrar of Companies (RoC), reveal that while revenue has decreased, losses have nearly doubled, raising concerns about the company’s financial health.
Financial Overview
In FY25, SUGAR Cosmetics generated Rs 404.5 crore from the sale of its cosmetic and beauty products, down from Rs 505 crore in FY24. Additionally, the company recorded Rs 7.5 crore in other income, primarily derived from interest on bank deposits and gains from the sale of current investments, a decrease from Rs 10.5 crore in FY24.
Expenditure Breakdown
The total expenditure for SUGAR Cosmetics in FY25 stood at Rs 546.5 crore, reflecting a 6.4% decline from Rs 584 crore in FY24. The breakdown of expenses is as follows:
- Cost of Goods Sold: Rs 110 crore, down from Rs 138 crore in FY24 (a nearly 20% reduction).
- Employee Benefit Expenses: Increased by 6.5% to Rs 74.5 crore from Rs 70 crore in FY24.
- Finance Costs: Rs 8.6 crore.
- Depreciation Expenses: Rs 10.2 crore.
- Advertising and Sales Promotion Expenses: Rose to Rs 168 crore from Rs 161.5 crore in FY24.
Net Losses
The company’s net loss widened by 97% to Rs 135 crore in FY25, compared to Rs 68.5 crore in FY24. This indicates that the company spent an average of Rs 1.35 to earn every rupee in FY25, a notable increase from Rs 1.16 in FY24.
About SUGAR Cosmetics
Founded in 2015 by Vineeta Singh (CEO) and Kaushik Mukherjee (COO), SUGAR Cosmetics has rapidly evolved from a digital-first startup to one of India’s fastest-growing premium beauty brands. The couple, both alumni of IIM Ahmedabad, have successfully established the brand as a significant player in the omnichannel beauty market.
Product Range
SUGAR Cosmetics offers a diverse range of products, including:
- Long-wear Lipsticks: Notably, the Matte As Hell crayons.
- High-coverage Face Products: Foundations and primers.
- Smudge-proof Eye Makeup: A variety of eye makeup products.
In addition to its flagship brand, SUGAR operates several specialized sub-brands, including:
- SUGAR POP: A budget-friendly line of essentials.
- Quench Botanics: A premium Korean skincare brand.
- ENN Beauty: Another sub-brand focusing on beauty products.
Strategic Partnerships and Collaborations
SUGAR Cosmetics has been proactive in forming strategic partnerships to enhance its brand visibility and market presence. In early 2025, the company partnered with Nike India for a lifestyle collaboration aimed at celebrating women’s fitness. This initiative was centered around the Nike After Dark Tour, a prominent women-focused night run held in Mumbai.
Additionally, in October 2023, SUGAR Cosmetics collaborated with Bollywood actress Kareena Kapoor through a strategic joint venture focused on the premium Korean skincare brand, Quench Botanics. These collaborations highlight the brand’s commitment to innovation and engagement with its target audience.
Funding and Investment
In July 2025, SUGAR Cosmetics raised Rs 40.99 crore (approximately $5 million) through a combination of debt and equity funding, led by existing investor Anicut Capital. To date, the company has successfully raised over $85 million, attracting investments from notable venture capital firms, including Elevation Capital, A91 Partners, and IndiaQuotient.
Market Position and Future Outlook
Despite the recent decline in revenue and the increase in losses, SUGAR Cosmetics remains a significant player in the Indian beauty market. The company’s focus on high-performance products, strategic partnerships, and innovative marketing strategies positions it well for future growth. However, the rising expenses and widening losses will require careful management and strategic planning to ensure long-term sustainability.
Conclusion
SUGAR Cosmetics’ recent financial performance underscores the challenges faced by many companies in the competitive beauty industry. As the brand navigates through these hurdles, its commitment to quality and innovation will be crucial in maintaining its market position and achieving profitability in the future.
Note: The financial figures and company information mentioned in this article are based on the latest available data as of FY25.
