ⓘ Featured image: Vineeta Singh, CEO & Co-founder of Sugar Cosmetics; Credits: MAKERS India
- Considering the high gross margin rate, the debt-based funding round is the best fit for Sugar
- The funding round is the tenth investment via Stride Ventures maiden fund
Mumbai-based cosmetics brand and startup Sugar Cosmetics, on Wednesday, announced that the company has raised $2 million in its Series C debt funding round led by Stride Ventures.
Founded in 2015 IIM-Ahmedabad graduates Vineeta Singh and Kaushik Mukherjee, Sugar is a cruelty-free and content-led beauty brand that targets the younger Indian audience through its range of affordable beauty products. The company claims that it has attained revenue of INR 105 crore (around $14.25 million) in the financial year ending 2020.
Commenting on the investment round, Vineeta Singh, CEO & Co-founder of Sugar Cosmetics, said,
“Sugar plays in a high gross margin category which makes debt a fantastic choice for us. With superior product-market fit and long-term growth appetite, we are excited about working with Stride and their partner private bank and announce USD 2 million as the first tranche of the Series C funding that we hope to close later this year,”
On the other side, Stride Ventures in a press statement said,
“Stride Ventures led a debt round of USD 2 million in Sugar Cosmetics. The fund has partnered with one of India”s leading private banks for this deal and is committed to being a strategic partner in Sugar’s growth journey with their customised offerings and deep relationships across banks and corporates,”
Stride Ventures also added that the fresh funds will be strategically deployed towards Sugar’s growth – fulfilling the company’s working capital and inventory requirements.
According to the venture capital firm, this investment in sugar is the tenth investment through Stride’s maiden fund which was launched in 2019 with a plan to invest into around 25 to 30 startups.