Funding: SUGAR Cosmetics Raised $2 Million from Stride Ventures in Debt Round
By: Ashwathy Nair
One of the leading cosmetics brand, SUGAR cosmetics has raised $2 million from Stride Ventures in debt round. For this deal, the fund has also joined with one of India’s leading private banks. The funds will be used by SUGAR in order to meet working capital and inventory requirements along with that, it encourages aggressive growth through the peak sales and festive season.
Driven by Stride Ventures, for this contract, the fund has also partnered with one of India’s leading private funds. Which, with its tailored offering and deep relationships between banks and companies, has committed to becoming a strategic partner in the successful journey of SUGAR.
The co-founder and CEO of SUGAR Cosmetics, Vineeta Singh said that “SUGAR plays in a segment of high gross margin that makes debt a fantastic choice for us. We are excited to collaborate with Stride and their partner private bank with superior product-market fit and long-term growth appetite and announce the US $2 million as the first tranche of Series C funding that we expect to close later this year”.
Sugar Cosmetics retails online from make-up to daily skincare products, as well as from its own 2,400 stores in 130 cities. The company says that in the last two years it has seen a 6x increase in sales and clocked net revenues in FY20 of Rs 105 crore.
The founder and managing partner of Stride Ventures, Ishpreet Gandhi said that “SUGAR has been able to stand apart in a highly competitive environment within a limited period of time. Their branding, business strategy and offering of affordable luxury goods attract the increasing younger audience significantly. In the lifestyle market, the brand has rapidly become a household name and we are excited to be partnering with them on their journey”.
Stride Ventures’ tenth investment from its maiden fund is the new infusion and marks the first foray into the lifestyle market. Stride Ventures has been focused on investing in market leaders across industries since its inception. In 2019, Stride Ventures launched its maiden fund and aims to invest in Stride Venture India Fund I for 25-30 startups.