A91 Partners Bets $15M On SUGAR Cosmetics Amid Near 80% Valuation Cut

SUGAR Cosmetics, a D2C beauty and personal brand, has raised $15M in equity funding from A91 Partners. The investment values the company at ₹550–600 Cr, a plunge of around 75–80% from the ₹2,600–2,700 Cr valuation at which it raised funds in November 2024.

The steep markdown is the defining feature of the round. A91 Partners is backing the company at a time when its financials have weakened: SUGAR's operating revenue fell about 20% year-on-year to ₹404.4 Cr in FY25, while its net loss nearly doubled to ₹135 Cr in the same period.

The new valuation is a sharp reversal from the company's last fundraise. SUGAR was valued in the ₹2,600–2,700 Cr range in November 2024; the current round values it at a fraction of that level.

The near-80% cut shows how far investor expectations for the D2C beauty brand have reset. A91's decision to invest at this valuation gives SUGAR fresh capital to work with, but it also marks a steep correction from the company's earlier fundraise.