BENGALURU: At a time when start-ups are finding ways to curb costs and there is a slowdown in funding rounds, omnichannel beauty company SUGAR Cosmetics on Tuesday closed its $50 million Series D round.
The funding was led by the Asia fund of L Catterton, and also saw strong interest from multiple private equity funds and also from existing investors -- A91 Partners, Elevation Capital and India Quotient.
The beauty and personal care market has been expanding for the past five years now, and it is expected to reach $21 billion in 2025.
According to the start-up, rising adoption of online shopping and greater product penetration in secondary cities are also contributing to the market's enlargement.
SUGAR Co-Founder and CEO Vineeta Singh said, "The firm's brand-building and value-creation capabilities will fortify our growth."
Anjana Sasidharan, L Catterton Asia Managing Director, who will be joining the company's board, said, "India's cosmetics market is at an exciting inflection point of expansion."
L Catterton has been investing globally in the beauty and personal care space. Current and past investments in the space include The Honest Company, TULA, Bliss, Ci FLAVORS, ELEMIS, ETVOS, Function of Beauty, Marubi, MERIT and Sociolla among others.
The start-up is also rapidly scaling its physical presence with over 40,000 retail outlets across 550 cities.