Sugar Cosmetics, a cruelty-free makeup, brand has raised $2 million in debt funding led by venture debt fund firm Stride Ventures. According to a statement issued by Stride Ventures, the fund has partnered with a leading private bank for this deal.
Sugar will use the funds to meet working capital and inventory requirements and fuel aggressive growth through the peak sales and festive season.
Vineeta Singh, co-founder and CEO, SUGAR Cosmetics, said, “SUGAR plays in a high gross margin category which makes debt a fantastic choice for us. With superior product-market fit and long-term growth appetite, we are excited about working with with Stride and their partner private bank and announce US $2M as the first tranche of the Series C funding that we hope to close later this year.”
From make-up to everyday skincare products, Sugar Cosmetics retails online as well from its own 2,400 outlets in 130 cities. The company claims that it has seen a 6x jump in revenues in the last two years and clocked net revenues of Rs 105 crore in FY20.
Ishpreet Gandhi, founder and managing partner, Stride Ventures, said, “In a fiercely competitive landscape, SUGAR has managed to stand apart in a short span of time. Their branding, market strategy and offering of affordable premium products greatly appeal to the growing younger demographic. The brand has quickly become a household name in the lifestyle segment and we are excited to partner with them in their journey.”
The latest infusion is Stride Ventures’ tenth investment from its maiden fund and marks its first foray into the lifestyle segment. Since its inception, Stride Ventures has focused on investing in market leaders across sectors. Stride Ventures launched its maiden fund in 2019 and plans to invest in 25-30 startups for Stride Venture India Fund I.
Published in CNBC TV18 on October 21 | Source: https://bit.ly/33ttxtl
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