The eight seed Indian lost 4-6, 3-6 in one hour and 18 minutes to her unseeded rival in the final round match of the grass court event.
Sania saved six breakpoints in the first set but one break of serve cost her dear as he conceded the lead.
In the second set she was successful in grabbing the chance to break her rival but also dropped her serve twice in the process and bowed out.
The Indian, playing second tournament post marriage, had last week lost the first round of the Birmingham event