Digital health and diabetes management startup Sugar.fit reported strong top line growth in the fiscal year ended March 2025, even as losses narrowed modestly amid rising operating expenses.
According to its financial statements filed with the Registrar of Companies (RoC), Sugar.fit’s revenue from operations surged 77% year-on-year to ₹66.5 crore in FY25, compared to ₹37.5 crore in FY24.
Service Revenue Drives Scale-Up
Sugar.fit offers a technology enabled diabetes care programme that combines digital tools with personalised human intervention. Revenue from services remained the sole source of operating income for the company.
Including other income of ₹8.5 crore, Sugar.fit’s total income rose to ₹75 crore in FY25, up from ₹42 crore a year earlier, reflecting continued scale-up of its care programmes.
Advertising and Employee Costs Dominate Spend
On the expenditure side, advertising and employee-related costs continued to be the largest cost centres.
- Advertising expenses remained flat at ₹34 crore, accounting for nearly 29% of total expenses
- Employee benefit expenses increased 18% to ₹33 crore, forming about 28% of overall costs
A notable increase was seen in cost of materials consumed, which jumped sharply to ₹21 crore in FY25, compared with just ₹0.6 crore in FY24, contributing nearly 18% of total expenditure.
Other overheads, including legal and professional charges and miscellaneous expenses, together added over ₹24 crore during the year.
Overall, total expenses rose 31.5% to ₹117 crore in FY25, from ₹89 crore in the previous fiscal.
Losses Narrow as Unit Economics Improve
Despite higher spending, Sugar.fit managed to reduce its net loss by 11% to ₹42 crore in FY25, compared with a loss of ₹47 crore in FY24.
The company’s ROCE stood at -53.66%, while EBITDA margin came in at -68.27%, reflecting the capital-intensive nature of scaling healthcare services.
On a unit basis, Sugar.fit spent ₹1.76 to earn every rupee of operating revenue, an improvement from ₹2.37 in FY24, indicating early signs of operating leverage.
Liquidity Position Remains Tight
Sugar.fit’s cash and bank balances declined sharply to ₹1 crore as of March 2025, from ₹5.6 crore a year earlier. Current assets stood at ₹101 crore at the end of the fiscal year.
Funding and Long-Term Outlook
According to disclosures, Sugar.fit has raised $26 million in funding to date, with MassMutual Ventures and Tanglin Venture Partners among its lead investors.
While the company’s financials continue to reflect pressure, investors see long-term optionality in the sheer scale of India’s diabetes market, which remains one of the largest globally. The model, however, requires patience, given pricing sensitivity, high competition, and limited immediate willingness to pay among large sections of consumers.
For Sugar.fit, the road to sustainability remains challenging, but the data, outcomes, and learnings from operating at scale could prove valuable over a longer investment horizon.
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