Sugar Cosmetics Reports 20% Revenue Growth in FY24

Sugar Cosmetics, the popular beauty and personal care brand, has posted a 20% rise in operating revenue for the fiscal year 2024, reaching Rs 505.10 crore, up from Rs 420.28 crore in FY23. The omnichannel retailer also managed to reduce its net losses by 11.3 per cent, bringing them down to Rs 67.58 crore from Rs 76.24 crore in the previous year.

Despite the revenue growth, Sugar Cosmetics faced a rise in expenses, which grew by 15 per cent to Rs 583.72 crore. The increase in costs was primarily attributed to higher employee benefits, finance charges, and other operational expenses, impacting its bottom line.

The brand, which operates across multiple sales channels including e-commerce, quick commerce, and general trade, has continued to scale its operations. In May 2022, Sugar Cosmetics raised $50 million in a funding round led by L Catterton, with support from existing investors A91 Partners, Elevation Capital, and India Quotient.

Meanwhile, Sugar’s competitor, Renee Cosmetics, has seen impressive growth, nearly doubling its operating revenue to Rs 191.65 crore for FY24, up from Rs 97.15 crore in the previous year. However, the company’s losses have also grown, rising from Rs 32.66 crore to Rs 61.45 crore.

In June 2024, Renee Cosmetics secured Rs 100 crore in a Series B funding round, led by Evolvence India and Edelweiss Group, bringing its valuation to between Rs 1,200 crore and Rs 1,400 crore.

Both Sugar and Renee are navigating a competitive and rapidly growing beauty market in India, balancing revenue growth with the challenges of rising costs and profitability.