Malabar Investments, an investment fund focused on India, is reportedly in discussions with the initial investors of Mumbai-based SUGAR Cosmetics for acquiring a stake in the company through a secondary transaction.
As per ET, the deal is likely to be pegged between INR 80-100 Cr.
Upon completion of the deal, it is likely to value SUGAR Cosmetics at around INR 2,900 Cr. This transaction might see partial exits from early investors of SUGAR Cosmetics
The involvement of Malabar Investments could potentially open doors for other pre-IPO investors to join as well.
The beauty brand is eager to onboard an investor like Malabar Investments, known for acquiring stakes in companies poised for an initial public offering (IPO) in the near future.
Founded by Singh and Kaushik Mukherjee in 2015, SUGAR Cosmetics started its journey as a D2C brand, with an online platform. Later, it pivoted to an omnichannel model and claims to have over 40,000 retail outlets across more than 550 cities in India.
The platform markets products in the lips, eyes, face, nails and skin categories.
Back in 2022, SUGAR Cosmetics raised $50 Mn in Series D funding round led by the Asia fund of L Catterton, and A91 Partners, Elevation Capital and India Quotient as well.
The startup’s total revenue was INR 428.3 Cr, a 91.3% from INR 223.8 Cr it had generated in the previous fiscal year. In FY23, the startup incurred a net loss of INR 76.2 Cr, a marginal increase from INR 75.9 Cr it had incurred in the previous fiscal.
