Bollywood actor Ranveer Singh is the latest investor to join the D2C beauty startup Sugar Cosmetics. With him donning the hat of an investor, the expectation is that the partnership between the brand and Bollywood superstar further strengthens Sugar Cosmetics' position among GenZ and millennial consumers in India.
Singh's investment announcement comes close on the heels of a $50 million Series D fundraise led by the Asia fund of L Catterton, the largest global consumer-focused private equity firm. The upsized round saw interest from multiple private equity funds with continued participation from existing investors – A91 Partners, Elevation Capital and India Quotient.
In an interview with CNBC-TV18, Vineeta Singh, co-founder and chief executive officer, said, “We didn’t just want a Bollywood face. We wanted someone who could help us in this journey—from here—towards IPO. We really thought that Ranveer has a sense of business, he has a sense of brands, and he does also have a sense of beauty and fashion. We thought he is a good fit, and that is how we decided to get him on board.”
Sugar Cosmetics has 115 brand stores and is also visible in 40,000 other stores. By 2023, the goal is to take that number to 60,000 stores. “We are also looking at coming up with 100 stores of our own. Around 50-60 percent of our own business is conducted in Tier 2 and Tier 3. Over the next couple of years, we want to increase it to 70-75 percent. We are also looking to come up with our own stores in Tier 2 and Tier cities.”
Sugar clocks annual sales of over Rs550 crore. “We are investing in growth in FY23. We do feel that, in the last two years, the market for colour cosmetics did not grow fast. This year is important for the industry as well as for us.”
September to February, which is considered as the peak season, the company aims to bring in 60-65 percent of their annual business. Colour cosmetics sees high demand during festivals and this season will see the brand's biggest ever.
On acquiring other brands to add to Sugar's portfolio, Singh said, “Since there has been a funding slowdown, there are so many companies out there in the market which are open to strategic investments from brands like us. We are speaking to brands who are solving certain specific problems across the board, but they should have a product market fit.”