Homegrown make-up brand SUGAR Cosmetics has raised $2 million in a debt funding round led by Stride Ventures. This is the first tranche of the Series C funding round for the start-up.

Venture debt fund Stride Ventures said it has partnered with one of the leading private banks for this deal and is committed to being a strategic partner for SUGAR. This is Stride Ventures’ tenth investment from its maiden fund and marks its first foray into the lifestyle segment.

SUGAR Cosmetics follows a hybrid model with a robust online and offline presence across 2,400 outlets in over 130 cities. Launched in 2015 by Vineeta Singh and Kaushik Mukherjee, the brand clocked net revenues of ₹105 crore in FY 20.

Competitive segment

In a statement, 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.”

Vineeta Singh, Co-founder and CEO, SUGAR Cosmetics, added, “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 Stride and their partner private bank and announce $2 million as the first tranche of the Series C funding that we hope to close later this year.”