Blog · 8 Sep 2026
What went wrong with Sugar Cosmetics?
In today's Finshots, we explain what Sugar Cosmetics’ 80% valuation drop reveals about the economics of India's D2C beauty market.But here's a quick sid…
In today's Finshots, we explain what Sugar Cosmetics’ 80% valuation drop reveals about the economics of India's D2C beauty market.But here's a quick sidenote before we begin.
If people depend on your income, you need to read this.Most first-time earners skip insurance entirely, or buy the wrong thing because someone sold it to them. Both are expensive mistakes.That's why we're running a 2-day Insurance Masterclass to help you get it right from the start.📅 Tuesday, 8th September at 6:30 PM: Life Insurance📅 Wednesday, 9th September at 6:30 PM: Health InsuranceOnly 300 seats remaining. 👉🏽 Click here to reserve your spot today.Now, on to today’s story.The StoryA few years ago, Sugar Cosmetics looked like the perfect example of India's D2C revolution. The brand was built for young Indian consumers, particularly millennials and Gen Z, with products designed around Indian skin tones and a marketing strategy centred on social media, influencers and digital-first distribution.
Investors too loved this idea, and in 2022, the company raised money at a peak valuation of around ₹2,700 crore, making it one of India's most prominent homegrown beauty startups. However, the beauty market has changed considerably since then. Last week, Sugar completed its latest funding round, raising around ₹145 crore from A91 Partners.