Rare Rabbit secures first tranche of Rs 500 crore investment

After months of anticipation, D2C fashion brand Rare Rabbit has secured the first tranche of its Rs 500 crore investmentfrom investors including A91 Partners, Nikhil Kamath’sGruhas, and Ravi Modi’s family trust (promoter of Manyavar).

A part of a larger Rs 500 crore round, this initial funding round values the startup at a pre-money valuation of Rs 2,200 Cr (approximately $264 million), as estimated by Inc42. Led by A91 Partners, the funding also involves contributions from the family office of Ravi Modi, founder of Vedant Fashions (which owns Manyavar), and Zerodha cofounder Nikhil Kamath.

Reports indicate the round includes a primary infusion of INR 250 Cr, with the remainder through a secondary transaction where founders Akshika and Manish Poddar will sell shares. Founded in 2015 by the Poddars, The House of Rare operates Rare Rabbit, the women’s brand Rareism, and every day wear brand Articale.

For the financial year 2022-23 (FY23), Rare Rabbit’s operating revenue surged 77 per cent Y-o-Y to Rs 376 Cr, while net profit increased by 84 per cent to Rs32.2 Cr. The brand’s total expenditure rose by 72 per cent to Rs 338.7 crore from Rs 196.6 crore in FY22. The startup reportedly reached revenues of Rs600 crorein FY24, though it has yet to file official results.

Competing with new-age D2C fashion brands like Bombay Shirt Company, Snitch, Damensch, and The Souled Store, Rare Rabbit continues to solidify its position in the market.