In FY21, SUGAR Cosmetics’ revenue increased to INR 127.8 crore, while its loss decreased by 25%
- ByStartupStory | April 18, 2022
In FY21, Vellvette Lifestyle’s D2C cosmetics brand SUGAR Cosmetics reported a total income of INR 127.8 Cr, up 21.6 per cent from the previous fiscal year. However, when compared to FY20, when the firm recorded an 83 per cent rise in total yearly income to INR 105 Cr, the revenue increase appears to be modest.
Despite an 18.2 percent increase in total spending to INR 148.9 Cr, SUGAR Cosmetics’ total loss for the fiscal year fell to INR 21 Cr from INR 28.2 Cr in FY20. In FY20, the startup’s loss increased by almost five times from INR 5.77 Cr in FY19. In terms of costs, the D2C company spent INR 19.2 crore on employee benefits in FY21, compared to INR 12.7 crore the year before. However, advertising and promotion accounted for more than 23% of the company’s overall expenses for the year. In FY21, SUGAR Cosmetics spent INR 34.4 crore on advertising & promotion, up from INR 28.4 crore the year before.
The Mumbai-based company has always been transparent about its aggressive social media and influencer marketing tactics. One of the secrets to the startup’s success, according to Inc42 Plus The D2C Summit in 2021, was its use of influencer marketing and social media hype production. Its Instagram account recently surpassed 2 million followers. Miscellaneous expenses, which include spending on packing material, testers and consumables, labor charges, and other costs, accounted for a significant portion of the startup’s total expenses in FY21, at INR 28 Cr.
Vineeta Singh and Kaushik Mukherjee, both IIM Ahmedabad alumni, established SUGAR Cosmetics in 2015. It’s an omnichannel brand with physical locations in tens of thousands of retailers and chains, including Shoppers Stop, Lifestyle, Central, Health & Glow, and NewU. Its items are also available on Amazon, Flipkart, Nykaa, and Myntra, as well as on the company’s own website and mobile app.
D2C is currently a booming sector, with more firms entering it from various verticals such as fashion and clothes, fitness, beauty, and wellness. As the epidemic brought most offline businesses to a halt, digital first D2C companies have gained increasing traction due to fast product access, safe online purchase, and simple doorstep delivery.
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