Sugar.fit, a Gurugram-based digital health startup focused on diabetes care, reported strong revenue growth for the financial year ended March 2025 (FY25), while trimming losses modestly. The results reflect rising demand for tech-enabled chronic care services and the company’s ongoing effort to improve unit economics amid a competitive health‑tech market.
Revenue surge driven by service-led diabetes programmes
Sugar.fit’s revenue from operations rose to ₹66.5 crore in FY25 from ₹37.5 crore in FY24, representing 77% year‑on‑year growth. Including other income of ₹8.5 crore, total income reached about ₹75 crore in FY25 versus ₹42 crore the previous year.
The company’s income is entirely service‑based, earned mainly from structured diabetes care programmes that combine digital monitoring, personalised diet plans, medical supervision and health coaching. With lifestyle diseases such as diabetes increasing across India, Sugar.fit has tapped growing urban and semi‑urban demand for remote, tech‑enabled chronic care solutions.
Costs rise but efficiency improves
Overall expenditure grew about 31.5% to ₹117 crore in FY25, up from ₹89 crore in FY24. Employee benefit expenses increased 18% to ₹33 crore as the company expanded hiring to scale operations. The cost of materials consumed rose sharply to ₹21 crore from ₹0.6 crore a year earlier, while advertising and promotional spends remained substantial at ₹34 crore, accounting for nearly one‑third of total costs.
Despite higher spend, operational efficiency improved. Sugar.fit reported a spend of ₹1.76 to earn every rupee of revenue in FY25, down from ₹2.37 in FY24, indicating better cost management and improved unit economics as the business scales.
Losses narrow but profitability challenges persist
Net losses reduced by around 11%, with Sugar.fit posting a net loss of ₹42 crore in FY25 compared with ₹47 crore in FY24. The company remains loss‑making and continues to report negative return on capital employed and EBITDA losses, underlining that sustained profitability is still some distance away.
Cash and bank balances dipped to ₹1 crore at the end of FY25 from ₹5.6 crore a year earlier, reflecting continued investment into growth and operations.
Funding, competitive landscape and outlook
To date, Sugar.fit has raised nearly $26 million from investors to fund product development, marketing and team expansion. The startup operates in a competitive digital health ecosystem where customer acquisition costs, pricing sensitivity and long‑term retention are key challenges.
Going forward, the company’s ability to scale responsibly, improve margins and control acquisition costs will determine its path to profitability. Given India’s expanding need for preventive and chronic care services, Sugar.fit is well positioned to benefit from long‑term demand, but consistent execution will be critical.
