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The segment continues to offer margins and loyalty few other consumer verticals possess, while SUGAR, even after the correction, continues to boast of 1,682 employees and 181,320 website visitors per month, which constitutes a 13.52 percent increase in just 30 days, a clear indication that it continues to be a brand that consumers are looking for. What has changed now is the expectation from the investor community about that opportunity.
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Storyboard•22-09-2026, 09:12
SUGAR Cosmetics' Valuation Plummets 85%, Exposing India's Beauty Market Shift
  • •SUGAR Cosmetics' valuation dropped by 85% (₹3,200 crore or $330 million) in four years, securing ₹144.47 crore at a ₹550-600 crore valuation in its latest funding round.
  • •The decline reflects a broader repricing of India's D2C beauty market, with investor focus shifting from topline revenue to gross margin, bottom line, and capital efficiency.
  • •Acquisitions like HUL-Minimalist and Wipro-Dermatouch show varying revenue multiples, with SUGAR's current funding at 1.5x revenue, indicating a widening valuation band for D2C beauty brands.
  • •SUGAR's financial reports reveal a net loss of ₹67 crore in FY24 and ₹135 crore in FY25, alongside a reduction in offline stores due to per-store losses.
  • •The article highlights a shift in investor expectations: from valuing growth speed in 2022 to prioritizing cost-effective growth and profitability-linked metrics in 2026.
Read Full Article on Storyboard in English

Key Questions Answered

Sugar Cosmetics secured ₹144.47 crore from A91 Partners at an estimated valuation of ₹550 crore to ₹600 crore. This represents an 85% valuation cut compared to its peak valuation of roughly ₹3,750 crore from four years prior.

Sugar Cosmetics experienced a 20% decline in operating income to ₹404.4 crore, while net losses nearly doubled to ₹135 crore. Additionally, EBITDA losses widened more than twofold to ₹116 crore.

In 2026, investors have shifted focus from top-line revenue growth and GMV multiples to profitability metrics, contribution margins, EBITDA trajectories, and gross margins. The market now values individual company performance and sustainable free cash flow over rapid top-line expansion.

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