[Funding Alert] SUGAR Cosmetics Gets $2 Million Debt Funding From Stride Ventures
In FY2020, the company clocked net revenue of INR 105 crore
Stride Ventures led a debt round of $2 million in SUGAR Cosmetics. This is Stride Ventures’ tenth investment from its maiden fund and marks its first foray into the lifestyle segment. The investment in Mumbai-based cosmetic startup SUGAR reinforces Stride’s continuing preference for homegrown startups that have shown strong company fundamentals.
A statement said that the makeup startup’s hybrid approach with a six-times jump in revenues in two years and a robust online as well as offline presence across 2,400 outlets in over 130 cities and strong brand loyalty makes it an attractive proposition.
“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,” said Stride Ventures founder and managing partner Ishpreet Gandhi, commenting on the funding.
Launched in 2015 by IIM graduates Vineeta Singh and Kaushik Mukherjee, the startup will strategically deploy the fund to keep pace with working capital and inventory requirements and fuel aggressive growth through the peak sales season with the brand bouncing back past its pre-COVID peak.
“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 $2 million as the first tranche of the Series C funding that we hope to close later this year,” added SUGAR Cosmetics co-founder and chief executive officer Singh.