Mumbai-based direct-to-consumer (D2C) cosmetics brand SUGAR Cosmetics is planning to expand its network of exclusive brand stores with a focus on penetrating deeper into the south Indian market.
“Internally, we have a target of having 200 brand-owned stores. By the end of the year, we expect to have at least 150 exclusive brand outlets and a lot of that expansion will be focussed on the South Indian market, “Vineeta Singh, Co-Founder and CEO, SUGAR Cosmetics, told BusinessLine.
“As a brand, we are almost getting 24 per cent of our business from the South, which is rare for make-up brands as most other brands are concentrated mostly on the North Indian market,” Singh added.
She was speaking on the sidelines of the company’s 100th brand-owned store launch in Chennai on Friday. Founded in 2015 by Vineet Singh and Kaushik Mukherjee, SUGAR Cosmetics initially began its journey as an online D2C beauty and personal care brand. It soon emerged as one of the fast growing cosmetics brands, especially among Gen-Z and Millennial consumers. SUGAR Cosmetics then pivoted into an omnichannel model. The company claims its products are currently available across 35,000 multi-brand outlets spread across 550 cities in the country.
Last week, the company announced a raise of $50 million in Series D funding led by the Asia fund of L Catterton, which is a joint venture investment vehicle owned by LVMH, the Arnault Group and America-based Catterton. The funding round also saw participation from existing investors such as A91 Partners, Elevation Capital, and India Quotient.
Singh said the L Catterton investment will also help the brand expand globally. “Although our focus will primarily be in India for the next 2 years, the partnership will help us scale up in overseas markets like the US, Middle East, South Asia and South-East Asia.”
When asked about the IPO plans, Vineeta said that the company will look at raising funds through a public issue over the next three years but has no such plans at the moment.