Omnichannel beauty retailer Sugar Cosmetics recorded a noteworthy 89% year-on-year surge in operational revenue for FY23, reaching Rs 420 crore, while maintaining a steady net loss of Rs 76 crore.
The Mumbai-based company witnessed a substantial 68% increase in total expenses to Rs 505 crore, mainly attributed to heightened expenditure on stock-in-trade acquisitions due to an extensive offline expansion.
In the twelve months leading up to June 2023, Sugar Cosmetics nearly doubled its store count, totaling around 200.
Originally established as an online-first direct-to-consumer (D2C) beauty brand in 2015 by Vineeta Singh and Kaushik Mukherjee, Sugar Cosmetics ventured into offline channels as part of its growth strategy.
The company’s advertising expenditure also escalated by 67% in FY23 to Rs 162 crore, constituting approximately 38% of its operational revenue.
Despite the increased spending, Sugar Cosmetics expressed confidence in achieving profitability by the conclusion of the ongoing fiscal year, as indicated in their November statement.
In April 2022, the company successfully secured $50 million in funding through a round led by L Catterton, with participation from existing investors such as A91 Partners, Elevation Capital and India Quotient.
Competing in the beauty and personal care sector alongside industry players like Mamaearth parent Honasa Consumer, Purplle, Wow Skin Science, and various smaller D2C enterprises, Sugar Cosmetics reflected a growth trend observed by others in the industry.
Plum, a D2C beauty brand supported by A91 Partners and Unilever Ventures, reported a 71% surge in FY23 revenue to Rs 322 crore.
Similarly, Purplle experienced a doubling of operating revenue to Rs 475 crore during the same period.
A joint study by Redseer Strategy Consultants and Peak XV Partners predicted substantial growth for India’s beauty and personal care market, with a compound annual growth rate of 10% between 2022 and 2027, surpassing global markets and reaching $30 billion.
