Brands
From the verge of closing shop, SUGAR Cosmetics delivers 49X returns to investor
MUMBAI: How many people know that the now cult-favourite beauty brand of Gen Z and millennials, SUGAR was once on the verge of shutting shop due to lack of funding?
The direct-to-consumer SUGAR Cosmetics founded in 2015 by IIM Ahmedabad alumni Vineeta Singh and Kaushik Mukherjee is one of the fastest-growing premium beauty brands in India today. However, things were far from rosy for the Mumbai-based start-up back in 2016 when it did not even have enough money to import its first batch of lipsticks manufactured in Germany.
Pulling back the curtain on an untold story of a contrarian bet for the brand in 2015, Co-founder & CEO Vineeta Singh says, “SUGAR Cosmetics started as a direct-to-consumer cosmetics brand in 2015 with products that were specifically created for young Indian women. Very few people know that it was also at this time when the company was pivoting from the beauty subscription service to a cosmetics brand, it came very close to shutting down.”
Had it not been for a leap of faith from its earliest backer, India Quotient, dipping into their ‘reserve for AMC fees’ funds for a sizeable sum of Rs 1 crore, the founder admits the picture would have been starkly different today.
“In 2016, having already infused capital from their first fund, the partners at India Quotient, Madhukar Sinha and Anand Lunia, were clear that their fiduciary duty towards their limited partners ruled out any possibility of any further investment from their successor fund without an external investor leading the round. However, for reasons best known to them, they took an extremely risky call of lending the company Rs 1 crore from the funds ‘reserve for AMC fees’ amount that VCs earn for managing the fund,” says Singh.
Without India quotient’s cash infusion, Apart from being unable to pay their German manufacturers to release the products that were ready for delivery, the company would never have reached the 2017 Series A which eventually set the brand up on a different trajectory altogether, she details. “It gives us immense joy to be able to return 49X of their investment to them and thank them for the pivotal role they’ve had and continue to have as SUGAR scales,” she gushes.
The cruelty-free brand has quickly made its way into most makeup aficionado’s hearts and vanity bags. The year 2021 was off to a strong start for the digital-first beauty player as it announced a $21 Million (Rs 153 crore) Series C funding round in early February. As part of this, India Quotient marginally trimmed its holding to clock a 49X return on its investment at an IRR of 61 per cent.
Till date, the company has raised a total of $33 Million funds. India Quotient has consistently backed the founding team through all four rounds of funding, including the recently concluded Series C where it co-invested with Elevation Capital and A91 Partners. As a result, India Quotient is currently the second largest institutional investor of the company with a stake worth more than its first two funds put together.
The early-stage investor firm first invested in the vision back in 2013 when the parent company Vellvette Lifestyle was pursuing a beauty subscription service business model. In 2015, SUGAR Cosmetics was launched under the same company with a limited range of Crayon Lipsticks, Vivid Lipsticks, Matte Eyeliner and Kajal that disrupted the online cosmetics market and went viral through rave reviews on Instagram and YouTube. Starting with net revenue of Rs 3 crore in 2016-2017 the brand successfully clocked in Rs 105+ crores in its fourth fiscal year, reaching an 85 per cent year-on-year growth rate. This, while notching up 1.5+ million followers across social media platforms on the side.
India Quotient founding partner Madhukar Sinha said, “Ever since the launch of our operations in 2012, we have invested in over 70 start-ups. While we first backed the founders in 2013, we did infuse some amount in SUGAR Cosmetics in 2016 from the first fund’s reserve for AMC fees amount – we just knew that this association was to go a long way. The projections of the online beauty industry and the all-in approach of the team just had to be seen through to the Series A fundraise in June 2017.”
Besides investments in keeping the brand’s fast-moving product range ahead of the curve, SUGAR plans on using their latest funds in building both digital and retail distribution to further their reach in existing and new geographies, particularly in tier-2 and tier-3 towns of India. The brand’s Android and iOS apps have seen a million downloads with a 4.6-star rating, indicating a strong community of beauty enthusiasts that the brand speaks to. The retail footprint is also expected to grow from the current 10,000+ retail outlets to 40,000+ in the current year.
Sinha affirms, “Seeing the brand grow to become a cult-favourite among millennial women was a proud moment for us as well because we knew that the gut feel was validated. Watching how quickly SUGAR was carving their mark in the beauty industry, we returned to invest in the brand in their Series B & Series C rounds as well. For a brand that is merely 5 years old, SUGAR has taken the industry by storm and we are happy to be a part of their success journey.” Indeed.
Brands
Yes Madam taps Rajpal Yadav’s Chota Don nostalgia to power new digital campaign
Home salon platform ropes in Tanya Mittal as it bets on humour and pop culture to showcase trust and convenience
NOIDA: India’s fast-growing home salon platform Yes Madam is leaning on nostalgia and a dose of comic chaos to pitch its services. The brand has launched a new digital campaign starring Rajpal Yadav and influencer Tanya Mittal, reviving Yadav’s much-loved Chota Don character to underline the reliability of at-home beauty services.
The campaign marks Yes Madam’s first collaboration with Rajpal Yadav and revisits the quirky Chota Don persona made famous in the 2007 film Partner. Produced with Footloose Films, the film blends slapstick humour with a nostalgic callback to spotlight the platform’s promise of dependable, quality services delivered at home.
The storyline plays out like a miniature action comedy. Tanya Mittal finds herself surrounded by goons and calls for help, only for Rajpal Yadav to appear in full Chota Don mode, dispatching the attackers in his trademark comic style as Mittal cheers him on. The drama then flips abruptly to a calmer scene, with Mittal relaxing at home while enjoying a Yes Madam service and insisting the heroic episode really happened, even as posters of Chota Don decorate her house. The film ends with Yadav’s voiceover declaring that the incident may or may not have happened, but the trust and quality of Yes Madam’s services certainly have.
The collaboration also follows a broader show of support for Rajpal Yadav within the industry. In the growing wave of backing for the veteran actor, Mayank Arya, co-founder and chief executive of Yes Madam, publicly supported actor-producer Sonu Sood’s call for concrete help from the film industry and corporate brands. Arya took to the social media platform X urging companies to move beyond expressions of sympathy and instead offer tangible opportunities to the actor amid his ongoing legal and financial challenges.
He wrote, “Seconded @SonuSood. Even brands should come forward to help the great talent. @Rajpalofficial will also be a part of an ad film @_yesmadam! Have already aligned the team on it. #ComeBackStronger.”
Seconded @SonuSood. Even brands should come forward to help the the great talent.@Rajpalofficial will also be a part of an ad film @_yesmadam !
Have already aligned the team on it.#ComeBackStronger https://t.co/Q7qpJttLTs— Mayank Arya (@iammayankarya) February 11, 2026
Rajpal Yadav recently surrendered at Tihar Jail after the Delhi High Court rejected his plea seeking additional time to repay dues in a long-running cheque-bounce case. The actor had been accused in the case in 2018 after he was unable to repay a loan taken for a film project that failed at the box office. The court later ordered him to surrender after the dues remained unpaid.
The situation triggered a wave of support from several high-profile figures. Sonu Sood emerged as one of the most prominent voices, expressing solidarity and promising Yadav a role in his next film. Sood emphasised that industry support should be about dignity and real job opportunities rather than charity. Celebrities including Salman Khan, Ajay Devgn, Gurmeet Choudhary and Guru Randhawa have also publicly extended financial and professional support.
Before surrendering, Rajpal Yadav shared an emotional statement in which he spoke about feeling alone and unsupported, a remark that struck a chord with many in the industry. However, his brother later clarified that the actor would never have intended to suggest that he lacked support from colleagues or well-wishers.
Reflecting on the campaign, Mayank Arya said the film was designed to entertain while strengthening the brand’s message. “At Yes Madam, we have always believed in creating campaigns that connect with audiences in an engaging and memorable way. I had earlier spoken about the importance of extending meaningful opportunities to Rajpal Yadav, and we are glad to be the first brand to take that step forward with this collaboration. Through this film, we wanted to create a compelling narrative while also reinforcing the trust and reliability that customers associate with Yes Madam’s services,” Arya said.
Akanksha Vishnoi, co-founder, said the campaign leans on nostalgia to strike a chord with digital audiences. “Consumers today engage deeply with content that blends entertainment with relatability. With this campaign, we wanted to revisit a nostalgic moment while subtly reinforcing the convenience and reliability of at-home services. Rajpal Yadav’s Chota Don is an iconic character that instantly evokes nostalgia and humour, making it the perfect fit for this campaign. Tanya Mittal’s presence added a vibrant energy and helped us bring the vision of the campaign to life,” Vishnoi said.
Founded in 2016, Yes Madam offers salon and spa services at home through trained professionals using hygienic, single-use product formats. The platform now operates in more than 55 cities across India, pitching convenience, transparency and quality to a growing base of urban consumers.
The new campaign, rolling out across social media and video platforms, makes its pitch with a wink. The Chota Don rescue might be fiction, but the promise of a salon at your doorstep, the brand suggests, is the real deal.
