/indianstartupnews/media/agency_attachments/s1FnhAYONODoxNkoC8xA.png)
Follow Us/indianstartupnews/media/media_files/12Hp5hQNjk8ZusUt3ce8.jpg)
New-age men's apparel and fashion brand Rare Rabbit is reportedly closing its first institutional funding round of Rs 500 crore.
According to an ET report, the round is being led by A91 Partners, a well-known investment fund, with participation from the family office of Ravi Modi, the founder of Vedant Fashions, which runs the ethnic fashion brand Manyavar, and Nikhil Kamath, co-founder of Zerodha.
Who is investing how much?
The report said, the round will involve A91 Partners contributing Rs 350 crore, while Ravi Modi's family office and Nikhil Kamath will collectively invest the remaining Rs 150 crore.
The transaction includes approximately Rs 250 crore in primary capital for Rare Rabbit and the remaining Rs 250 crore as a secondary share sale by Akshika and Manish Poddar, the husband-wife duo behind the brand.
How well Rare Rabbit is performing financially?
Valued at around Rs 2,200 crore, Rare Rabbit has established itself as a prominent direct-to-consumer (D2C) brand in the fashion industry.
The startup, which has been bootstrapped until now, reported impressive financial results in fiscal 2024. Revenue was over Rs 600 crore, and operating profit exceeded Rs 100 crore, representing a year-on-year growth of over 60%, compared to the Rs 376 crore in operating revenue reported in fiscal 2023.
Notably, Rare Rabbit also recorded a net profit of Rs 32 crore for fiscal 2023.
How will the funding impact Rare Rabbit’s expansion?
Rare Rabbit, which operates under Bengaluru-based Radhamani Textiles, currently has around 135 physical stores and plans to aggressively expand its retail footprint following this funding round.
The company’s stores are spread across metro cities such as Delhi, Bengaluru, Mumbai, Hyderabad, and Chennai, as well as tier-II and tier-III cities like Ahmedabad, Bhopal, Dehradun, Ranchi, Guwahati, and Vijayawada.
With the new investment, Rare Rabbit will be able to increase its offline presence and continue its growth trajectory in the premium men’s fashion segment.