Makeup producer, Sugar cosmetics has “witnessed tremendous growth” and goals to be current in 100,000 shops by finish of monetary yr (FY) 2024, co-founder and CEO, Vineeta Singh advised FE.
She, nonetheless, did warn that the corporate would work on that quantity solely after it reaches 60,000 shops by finish of FY23 and sees no form of progress stagnation.
The model’s merchandise presently promote in about 40,000 shops and Singh is gunning to be India’s primary magnificence product firm, overtaking Lakme and Maybelline, in one other 5 years.
“We’ve become ambitious and think we have it in us to aim to be India’s number one makeup brand. It is difficult to say when we’d hit that mark because the market is growing rapidly but internally we’re working to reach that in five years,” Singh stated.
“We are currently at a run rate of Rs 550 crore per annum and to be the leader we need to grow about three times from here,” she added.
The firm’s gross merchandise worth (GMV) stands at Rs 45 crore per 30 days, whereas its internet annual recurring income (ARR) is about Rs 380 crore. Sugar’s common order worth (AOV) stands at Rs 1200.
Singh stated her firm’s income will double to about Rs 1100 crore within the subsequent 12 months.
While capturing the Indian market is on the core of Sugar’s growth plans, L Catterton – its investor that led the Series D spherical – will assist the corporate increase to newer markets overseas as effectively.
Sugar has already launched within the Middle East and is now stepping up its presence within the United States, too. In the US it presently sells on-line solely however will open bodily shops by subsequent yr. The firm desires to concentrate on these two areas for the subsequent two years earlier than it makes customised merchandise obtainable for different areas. Its revenues from worldwide market will stay beneath 10%.
Locally, it goals to double its retailer rely to 200 within the subsequent yr.
Asked on the preliminary public providing (IPO) plans, Singh stated it was deliberate for two-three years from now however there no work was occurring on that entrance but. The aim “is to definitely become profitable by FY24” after which give a strategic exit to traders and generate wealth for the staff quickly after.
The firm has raised over $85 million to this point, together with $50 million from its Series D spherical which values the corporate at about $500 million. Sugar may also contemplate one other pre-IPO spherical to fund its “aggressive expansion plans” however was sufficiently capitalised for its wants for some time, Singh concluded.
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Source: www.financialexpress.com”