Sugar cosmetics will expand its presence to 100,000 stores by the end of FY24

Make-up maker Sugar cosmetics has “seen huge growth” and aims to be in 100,000 stores by the end of fiscal 2024, co-founder and CEO Vineeta Singh told FE.

She cautioned, however, that the company will only work on that number after it hits 60,000 stores by the end of FY23 and sees no sort of stagnant growth.

The brand’s products are currently sold in around 40,000 stores and Singh aims to become India’s top beauty company, overtaking Lakme and Maybelline, in five years.

“We have become ambitious and believe we have the ambition to become the number one makeup brand in India. It’s hard to say when we’ll reach that milestone as the market is growing rapidly, but internally we’re striving to reach that goal in five years,” Singh said.

“We are currently at a rate of Rs 550 crore per year and to be the leader we need to grow about three times from here,” she added.

The gross merchandise value (GMV) of the business stands at Rs 45 crore per month, while its annual net recurring revenue (ARR) is around Rs 380 crore. Sugar’s average order value (AOV) stands at Rs 1200.

Singh said his company’s revenue will double to around Rs 1,100 crore in the next 12 months.

Although conquering the Indian market is at the heart of Sugar’s expansion plans, L Catterton – its investor who led the Series D round – will also help the company expand into new markets overseas.

Sugar has already launched in the Middle East and is also strengthening its presence in the United States. In the United States, it currently only sells online, but will open physical stores by next year. The company wants to focus on these two regions over the next two years before rolling out custom products to other regions. Its revenues from the international market will remain below 10%.

Locally, it aims to double its number of stores to 200 next year.

Asked about plans for an initial public offering (IPO), Singh said it was planned for two or three years from now, but no work was yet underway on that front. The goal “is to become permanently profitable by FY24” and then provide a strategic exit for investors and generate wealth for employees soon after.

The company has raised over $85 million to date, including $50 million from its Series D, which values ​​the company at around $500 million. Sugar may also be considering another pre-IPO round to fund its “aggressive expansion plans,” but has been sufficiently capitalized for its needs for some time, Singh concluded.

follow us on Twitter, instagram, LinkedIn, Facebook

Rachel J. Bradford