Malabar Investments in talks to acquire Sugar Cosmetics stake | Maqvi News

Investment fund Malabar Investment is taking part in talks to acquire a stake in beauty and personal care brand Sugar Cosmetics as part of a secondary transaction. The deal could see the business valued at approximately Rs 2,900 crore. 

“It is a part of a larger secondary share sale exercise,” an anonymous source close to the development told ET Tech. “Malabar Investments has held detailed discussions with the company and the investors to enter Sugar’s cap table… Malabar Investments coming in could pave the way for other pre-IPO [initial public offering] investors to also come in.”
 
As the proposed deal is a secondary share sale, the money would go to Sugar Cosmetics’ existing investors who want to sell part of all of their stake, and not to Sugar Cosmetics. Some of the business’ early investors may choose to partially exit the company and Malabar Investments’ transaction is expected to total between Rs 80 crore and Rs 100 crore. 

Entrepreneurial husband and wife duo Vineeta Singh and Kaushik Mukherjee launched Sugar Cosmetics online before expanding into offline retail. The business saw its operating revenue increase by 89% year-on-year in the 2023 financial year to total Rs 420 crore.