Sugar Cosmetics: Transforming Beauty Standards and Empowering Every Face

Sugar Cosmetics: Transforming Beauty Standards and Empowering Every Face
Sugar Cosmetics: Transforming Beauty Standards and Empowering Every Face

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.

Until the emergence of e-commerce and Direct-to-Consumer (D2C) selling, the Indian beauty sector had been dominated by cosmetics majors for decades. In the beauty industry, it's difficult to overlook the influence of direct-to-consumer companies like Nykaa, Mamaearth, WOW Skin, Plum, and Sugar Cosmetics, which are quickly becoming customers' go-to alternatives in metros and Tier 1 and 2 cities.

With just two products when it was first founded in 2012, Sugar Cosmetics has quickly expanded to become one of India's leading beauty businesses, with 450 warehouses under its belt in just five years. Known for its cruelty-free makeup, the brand caters to bold, independent women who defy preconceptions and is the ideal fusion of style and performance. Sugar Cosmetics has evolved into a symbol of empowerment, enabling people to confidently express their individuality.

Here's learning more about Sugar Cosmetics, its Industry, its Founders and Team, Business Model, Revenue Model, Name, Logo and Tagline, Growth, Mission and Vision, Competitors, Challenges Faced, Future Plans, and more.

Sugar Cosmetics - Company Highlights

STARTUP NAME SUGAR COSMETICS
Headquarters Mumbai, Maharashtra, India
Sector Beauty, E-commerce, Brand Marketing, Cosmetics
Founder Kaushik Mukherjee and Vineeta Singh
Founded 2012
Website sugarcosmetics.com

Sugar Cosmetics - About
Sugar Cosmetics - Industry
Sugar Cosmetics - Founders and Team
Sugar Cosmetics - Startup Story
Sugar Cosmetics - Name, Tagline and Logo
Sugar Cosmetics - Mission and Vision
Sugar Cosmetics - Business Model
Sugar Cosmetics - Revenue Model
Sugar Cosmetics - Challenges Faced
Sugar Cosmetics - Funding and Investors
Sugar Cosmetics - Mergers and Acquisitions
Sugar Cosmetics - Growth
Sugar Cosmetics - Products and Launch
Sugar Cosmetics - Partnerships
Sugar Cosmetics - Advertisements and Social Media Campaigns
Sugar Cosmetics - Competitors
Sugar Cosmetics - Future Plans

Sugar Cosmetics - About

Sugar Cosmetics is one of India's fastest-growing premium cosmetic companies, with a cult following among millennials. Thanks to its clutter-breaking attitude, unique low-poly packaging, and chart-topping products, it has become the first choice of many Indian women. The brand's bestselling goods in the Lips, Eyes, Face, Nails, and Skin categories are sent all over the world from state-of-the-art facilities in Germany, Italy, India, the United States, and Korea.

The brand is devoted to producing products that are a great fit for every Indian skin tone throughout seasons and across the calendar, with a cruelty-free line that is high on design and high on performance. Sugar Cosmetics is aggressively expanding its strong existence, with over 40,000 retail outlets across 550 cities. It is backed by the faith of marquee investors and the passion of millions of beauty aficionados.

Sugar Cosmetics - Industry

According to the Statista analysis, the India Cosmetic industry is expected to reach a significant revenue of US $ 6.45 billion by 2024, growing at a CAGR of 2.86% from 2024 to 2028. This increase is partly explained by consumers' increasing preference for digital experiences, which has caused the beauty industry to undergo a dramatic shift in favor of e-commerce.

The ease of use and time-saving capabilities provided by online platforms serve as the foundation for this change. Customers can now move more easily between virtual stores and online content, having almost the exact same "real-life" experience with customization possibilities, product samples, and other features. This paradigm change demonstrates how the cosmetics business has responded to changing consumer tastes by redefining and improving the entire customer experience through the use of digital technology.

Sugar Cosmetics - Founders and Team

Sugar Cosmetics was founded by Kaushik Mukherjee and Vineeta Singh in 2012.

Vineeta Singh (Co-Founder and CEO) and Kaushik Mukherjee (Co-Founder and COO) of Sugar Cosmetics (Left to Right )
Vineeta Singh (Co-Founder and CEO) and Kaushik Mukherjee (Co-Founder and COO) of Sugar Cosmetics (Left to Right )

Kaushik Mukherjee

Kaushik Mukherjee, the co-founder and COO of SUGAR Cosmetics, boasts an impressive educational background, having graduated from BITS Pilani and earned a degree from IIM Ahmedabad. In addition to being a seasoned professional and a successful marathon and Ironman triathlete, Mukherjee is a TEDx speaker.

His professional journey commenced as an Applications Engineer at Oracle Corporation, followed by a role as an Analyst at Goldman Sachs. Mukherjee then founded BigSlick Infotech/AKVenture and later served as an Associate at McKinsey & Company. He continued his entrepreneurial journey as the Co-founder & MD of FAB Bag before founding and assuming the role of co-founder and chief operating officer at SUGAR Cosmetics. Mukherjee's diverse experiences underscore his multifaceted expertise in both the corporate and entrepreneurial realms.

Vineeta Singh

Vineeta Singh, co-founder and CEO of SUGAR Cosmetics, is a powerhouse driving India's fastest-growing cosmetic business. Armed with degrees from IIT Madras and IIM Ahmedabad, she extends her influence beyond the corporate realm as a TEDx Speaker and an accomplished triathlon and ultramarathon runner.

Vineeta is a well-known figure on Shark Tank India, where she displays her aptitude for entrepreneurship. Her career started with important internships at ITC Limited and Deutsche Bank. Following her role as a Director at Quetzal Verify Private Limited and her co-founding of FAB Bag, Vineeta went on to co-found Sugar Cosmetics and serve as its CEO.

Flaunt your startup with StartupTalky 

800+ stories, thousands of founders, and millions of visitors. Want to be the next?

StartupTalky is where founders, entrepreneurs, startups and businesses hang out and look up to for inspiration. If you have the means, we have the medium! Inviting founders and startups who are building sustainable solutions from ground zero! Startups who run the show, StartupTalky will let the world know!

Request Feature at StartupTalky

Sugar Cosmetics - Startup Story

The inception of SUGAR Cosmetics marks the collaborative effort of Vineeta Singh and her husband and business partner, Kaushik Mukherjee. Early in her career, Vineeta, an IIT Madras Electrical Engineering graduate with extra Business Studies from IIM Ahmedabad, made a crucial choice. In her twenties, she turned down a big employment offer of Rs. 1 crore because she wanted to follow her dream of being an entrepreneur.

Vineeta and Kaushik persisted in their startup efforts despite obstacles. Seeing a gap in the Indian beauty market, which was dominated by foreign brands that weren't very suitable for the country's environment and skin tone, the two took advantage of the knowledge they were able to gather via their beauty subscription service. The direct input from 100,000 women who subscribed to the program served as the basis for the debut of SUGAR Cosmetics.

Established with the tenets of adaptability, creativity, and in-depth knowledge of customer requirements, SUGAR Cosmetics has emerged as a leader in the Indian beauty sector. Vineeta Singh and Kaushik Mukherjee's joint efforts demonstrate the ability of business alliances to turn obstacles into success stories.

"We have a long way to go and great goals to achieve! Success to me is having the flexibility and capacity to achieve whatever I want without fear of failure. To be honest, I had my reservations when I turned down the job offer when I was 23 years old. But, in keeping with my concept of having no regrets, I pursued my ambitions. I was quite enthusiastic about being an entrepreneur and starting a business. I simply knew that if I didn't do it now, I'd regret it for the rest of my life, so I went ahead and did it," said Vineeta Singh.
Sugar Cosmetics Success Story Timeline
Sugar Cosmetics Success Story Timeline

Sugar Cosmetics - Mission and Vision

Sugar Cosmetics' mission statement says, "We believe in every interpretation of beauty. Bold to subdued, quirky to crazy, every day to glam goddess! We aim to celebrate every aspect of you, no matter what your style is. So, go ahead and pick your faves."

Sugar Cosmetics Logo
Sugar Cosmetics Logo

The company began as an online supplier of natural, paraben-free cosmetics and has since grown in popularity not just in India but throughout the world. Due to the usage of the black and white color combination, the visual identity of an Indian cosmetic business is beautiful and refined while also seeming bold and confident. The company's logo is made up of a wordmark with an emblem on the left, which serves as the brand's signifier and appears on all of the company's cosmetics.

Sugar Cosmetics' slogan says, “Rule The World, One Look At A Time!!!”

Sugar Cosmetics - Business Model

Sugar Cosmetics operates with a direct-to-consumer (D2C) business model that strategically incorporates an omnichannel approach. By using this strategy, Sugar leverage advantage of other eCommerce marketplaces, such as Amazon and Nykaa, increasing its accessibility and reach. The brand emphasizes its global presence through a variety of revenue streams, including both domestic sales in India and international export sales.

The customer-centric business approach of Sugar Cosmetics is one of its main advantages. The company does a great job of satisfying the wide range of demands and tastes of its target market. Its product line is carefully designed to be inclusive and versatile, with a wide variety of hues and formulas catered to all skin types and tones. Sugar's emphasis on diversity makes it seem like a brand that appeals to a wide range of customers.

Sugar Cosmetics - Revenue Model

Sugar Cosmetics makes money from different resources. Some of the prominent one's are listed below:

Various Channels of Sales:

  • Uses brick-and-mortar stores, the official website, and e-commerce partnerships (Amazon, Nykaa) for sales.
  • Specialty kiosks create an additional offline sales channel.

Revenue Streams by Geography:

  • Principal source of income for meeting local demands for beauty in India.
  • Significant income from export sales to other countries.

Present Both Online and Offline:

  • Consolidated internet sales on the official website.
  • Offline sales through unique kiosks and physical stores.

Sugar Cosmetics - Challenges Faced

Co-founders Vineeta and Kaushik faced several obstacles during Sugar Cosmetics' early years as they walked the difficult path of bootstrapping the company. Obtaining funding, identifying reliable suppliers, and assembling a team were major obstacles.

Company first had trouble making an impression in the crowded market. Products were difficult to market, and they had trouble obtaining finance. In spite of everything, the company's founders were committed to growing it. They put a lot of effort into producing new goods and attracting additional clients.

The year 2020 brought unprecedented challenges for Sugar Cosmetics, intensified by the global COVID-19 pandemic. Similar to numerous other brands, the company's valuation was impacted by supply chain delays, decreased customer spending, and general economic uncertainty.

Sugar Cosmetics changed course in response, embracing an online platform and stepping up its digital marketing and advertising initiatives to combat the market decline. This strategic move highlights the company's resolve to continue growing in the face of external hardships by demonstrating its ability to overcome obstacles and adjust to changing market conditions.

Sugar Cosmetics - Funding and Investors

Sugar Cosmetics has raised $87.5 million in over 6 funding rounds that the company has seen to date.

Here are the funding details:

Date Round Amount Lead Investors
Sep 3, 2022 Angel Round - Ranveer Singh
May 30, 2022 Series D $50 miilion L Catterton
Oct 21, 2020 Debt Financing $2 million Stride Ventures
Oct 21, 2020 Series C $21 million A91 Partners, Elevation Capital, India Quotient, Stride Ventures
Mar 8, 2019 Series B $12 million A91 Partners, Anicut Capital, India Quotient
Jun 1, 2017 Series A $2.5 million India Quotient, RB Investments Pte. Ltd.

Grow your business with Coursera. Learn top skills and thrive

Level up your business skills with Coursera courses. From marketing to management, our courses are designed to equip you with the latest knowledge and expertise. Learn from industry leaders and top educators, and earn a certificate to showcase your new skills. Enhance your career prospects and take your business to the next level. Start learning now and join the millions of professionals already on Coursera.

Invest in your business future with Coursera courses. Enroll now

Sugar Cosmetics - Mergers and Acquisitions

Sugar Cosmetics has acquired 1 company to date. The acquisition of ENN Beauty was announced on January 13, 2022, when the company picked up the majority (51%) stakes in the natural skin and hair care brand.

Sugar Cosmetics - Growth

The beauty firm, which operates on a hybrid model, currently has a presence in over 40,000 retail outlets across 550 cities. After the pandemic took a heavy toll, the corporation devised novel strategies to reinforce the trust connection between its brand and its clients. SUGAR Cosmetics found a position for itself in the fast-growing beauty sector and weathered the epidemic by slashing expenses and reorganizing the team, as well as utilizing social media marketing and an e-commerce push.

Some of the other growth highlights of Sugar are:

  • Sugar's website and app witness more than 2 million unique visitors each month.
  • It sells 200K+ products each month.
  • Sugar Cosmetics products are present in over 40K retail stores.
  • All prominent eCommerce marketplaces sell Sugar products, like Amazon, Flipkart, Nykaa, Myntra, and more.
  • Sugar also sells its products outside India, in countries like Korea, Germany, Italy, and the US.
  • Sugar onboards Shehnaz Gill as its first brand ambassador for Suagr POP in June, 2023.

Social media is one of the most effective tools used by SUGAR Cosmetics. According to Singh, they saw early on that customers were spending more time on their smartphones and engaging with their content on social media. The company leveraged this as a chance to boost its social media presence.

Financials

Sugar Cosmetics Financials
Sugar Cosmetics Financials
Sugar Financials FY22 FY23
Operating Revenue Rs 222 crore Rs 420 crore
Total Expenses Rs 300 crore Rs 505 crore
Profit/Loss Loss of Rs 76 crore Loss of Rs 76 crore

Expenses

Sugar total expenses rise from Rs 300 crore in FY22 to Rs 505 crore in FY23.

EBITDA

Sugar FY22-FY23 FY22 FY23
EBITDA Margin -30% -14%
Expense/Rs of Op Revenue Rs 1.35 Rs 1.20
ROCE -78% -29%

Sugar Cosmetics - Products and Launch

Sugar Play

'Sugar Play' is the name of the first pre-teen and teen-targeted makeup range ever introduced by the cosmetics company Sugar Cosmetics in August, 2023. The new color cosmetics line combines vibrant hues with formulas designed for sensitive, youthful skin.

New Store Launch

Sugar Cosmetics has added brick-and-mortar presence in the Delhi NCR area and built a new store at the Ghaziabad-based KW Delhi 6 mall in July, 2023.

BB Serum Hybrid Product

A BB Serum-hybrid product has been introduced by makeup company Sugar Cosmetics in March, 2023. The debut of the new product is intended to broaden the company's face makeup selection and serve Gen Z consumers who are always on the go.

Sugar Cosmetics - Partnerships

Amazon Prime

The highly anticipated second season of "Made in Heaven" on Amazon Prime is launched in August, 2023, and SUGAR Cosmetics is thrilled to present the exclusive "SUGAR x Made in Heaven" cosmetics kit with partnership.

OMP

OMP India will manage the complete media strategy for the cosmetic brand from the agency's location in Mumbai as part of this cooperation between the two companies in July, 2023.

Kareena Kapoor Khan

Kareena Kapoor Khan has partnered with Vineeta Singh and Kaushik Mukherjee, co-founder of Sugar Cosmetics, and invested an undisclosed sum of money in Quench Botanics, and has become a co-owner of the new business. In order to scale the new Korean skincare brand, the alliance is anticipated to make use of Singh and Mukherjee's expertise in the beauty e-commerce sector.

Sugar Cosmetics - Advertisements and Social Media Campaigns

Sugar Cosmetics Campaign

In the #ShukarHainSUGARHain campaign, the story unfolds with Ranveer Singh nervously introducing his girlfriend Tamannaah Bhatia to his family. Tamannaah gives Ranveer a peck right before the family opens the door, capturing a touching and realistic moment in relationships.

This endearing story deftly highlights SUGAR's dedication to long-lasting, smudge-proof cosmetics while also fitting in with the brand's USP of transfer-proof lipsticks. The advertisement successfully draws in viewers on an emotional level while emphasizing how long-lasting SUGAR's makeup is.

Sugar Cosmetics - Competitors

The top ten rivals in SUGAR Cosmetics' competitive group can be listed as:

  • Purplle
  • Marico
  • Lakme
  • Maybelline
  • Lotus Herbals
  • Blue Heaven Cosmetics
  • Plum
  • NewU

Sugar Cosmetics - Future Plans

Sugar Cosmetics is seeking to raise $100 million in a fresh funding round, which would value the business at between $700 and 800 million as per news report of November 9, 2023.

Vineeta Singh, co-founder of Sugar Cosmetics, mentioned in a news report dated January 4, 2024, "We are looking at about a two to three years’ timeline in terms of an IPO because it is important to have some solid track record of profitability in the bank before taking the company public. This also aligned well with our board because we had an aspiration that we should go into the market at a Rs 1,000-crore plus revenue, plus profitability. And that is how we are expecting to look at.''

FAQs

What does Sugar Cosmetics do?

Sugar Cosmetics is one of India's fastest-growing premium cosmetic companies, with a cult following among millennials.

Is Sugar Cosmetics an Indian company?

Yes, Sugar Cosmetics is an Indian company.

Who founded Sugar Cosmetics?

Sugar Cosmetics was founded by Kaushik Mukherjee and Vineeta Singh in 2012.

Who is the CEO of Sugar Cosmetics?

Vineeta Singh is the CEO of Sugar Cosmetics. She is also the founder of the company and can be popularly recognized as one of the judges of the popular Indian business reality show "Shark Tank India".

What is the Sugar Cosmetics valuation?

The Sugar Cosmetics valuation was last recorded at around $450-500 million as of November 2023.

Which country owns Sugar Cosmetics?

Sugar Cosmetics is an Indian company.

Which companies do Sugar Cosmetics compete with?

Some of the top companies Sugar Cosmetics competes with are:

  • Purplle
  • Lakme
  • Maybelline
  • Lotus Herbals
  • Blue Heaven Cosmetics
  • Nykaa
  • Plum
  • Marico
  • NewU
  • Emami

Must have tools for startups - Recommended by StartupTalky

Read more

Laurence Douglas Fink Success Story

Laurence D Fink: How This Man Built BlackRock and Transformed Investing

In the complicated world of finance, some exceptional leaders wield significant influence. Admired for their profound knowledge and strategic foresight, they serve as guiding beacons for businesses worldwide. That’s why, it becomes imperative to closely examine their life journeys and the paths they've taken, seeking valuable lessons and inspiration.

By Kanimozhi Sivakumar , Bhoraniya Huda Hifzur Rehman