'Picture Abhi Baaki Hai': Sugar Cosmetics Co-founder Vineeta Singh Addresses Concerns Over Valuation Cut

SUGAR Cosmetics co-founder Vineeta Singh has responded to reports questioning the future of the beauty and cosmetics company after its latest funding round came at a significantly lower valuation compared with previous investments.

In an Instagram post, Singh addressed messages from customers, partners and friends who expressed concern over media reports about the company’s valuation decline.

“So, you all have been seeing the articles, the posts, the videos. So many of you, friends, customers, partners are messaging me saying don’t read the news, media is evil,” Singh said in an Instagram post.

“Firstly, thank you and I love you. But nobody is evil. It is their job to put out the juiciest version of every story,” she added.

She said media attention was part of the journey of building a company, adding that both praise and criticism come with public success.

“And, well, the media has been extra generous with us in the last 5 years so they too get to tear us down with equal intensity. You know, if you get the applauses, you also get the boos. That’s all part of the deal and it’s absolutely fine.”

Valuation drops amid fresh funding

Addressing concerns over the latest fundraising round, Singh acknowledged that the company had raised funds at a lower valuation.

“Now the truth: yes we did raise a large round, yes it is at a worse valuation because (co-founder) Kaushik (Mukherjee) and I are here to build.”

She added that details on the financial aspects would be discussed later but expressed confidence in the company’s future, saying, “Picture abhi baaki hai mere dost”.

Speaking to employees, Singh encouraged the team to remain focused on execution.

“You have heard me say this over and over before but I will say it again: Be the man, be the woman in the arena because that is what matters.”

SUGAR Cosmetics recently raised around Rs 144.5 crore from existing investor A91 Partners. The funding round valued the Mumbai-based company between Rs 550 crore and Rs 600 crore, according to reports.

Financial challenges weigh on valuation

The company issued 112,248 compulsorily convertible preference shares to A91 Emerging Fund III at an issue price of Rs 12,871 per share. The shares will convert into equity if the company lists or after a 20-year period from the date of issue.

The latest valuation marks a sharp decline from November 2024, when SUGAR was valued at around Rs 2,600 crore to Rs 2,700 crore after raising nearly Rs 38 crore from investors.

The valuation correction comes amid pressure on the company’s financial performance. Regulatory filings showed SUGAR’s operating revenue declined around 20% to Rs 404.4 crore in FY25 from Rs 505.1 crore a year earlier. Its net loss widened to Rs 135 crore from Rs 68.4 crore.

The company’s EBITDA loss also increased to around Rs 116 crore in FY25 from Rs 48.5 crore in FY24.

SUGAR sells beauty and personal care products through its online platform, e-commerce channels and retail stores. The latest funding provides fresh capital as the company works to strengthen its business following a challenging financial year.