Tata Capital eyes affluent shoppers with a stake in Rare Rabbit
Aimed at tapping the burgeoning affluent market in India, Tata Capital, the financial services arm of the $144 billion Tata Conglomerate, is set to acquire a 13 per cent stake in the domestic fashion brand Rare Rabbit at a valuation of $300 million.
Rare Rabbit, founded in 2015 by the family-run company Radhamani Textiles, specializes in men's shirts and other apparel, offering a stylish range priced between $20 and $80. With a significant presence through 90 retail outlets across India and a robust online platform, Rare Rabbit has become a notable player in the fashion industry.
This investment by Tata Capital reflects the broader trend observed among conglomerates, with the likes of Mukesh Ambani's Reliance showing a keen interest in the premium fashion segment. Tata Capital's infusion of $40 million into Rare Rabbit underscores its commitment to being part of the evolving landscape of the Indian fashion and clothing sector.
It's noteworthy that major domestic and international brands including Tommy Hilfiger and Uniqlo, have been drawn to the opportunities presented by the Indian market. Concurrently, retail giants like Reliance and the Tata Group are strategically positioning themselves by catering to the middle-class segment, offering a diverse range of mid-range clothing options through their expansive networks of outlets across the nation. In essence, Tata Capital's investment in Rare Rabbit signifies a strategic alignment with the dynamic shifts in consumer preferences and the conglomerate's commitment to exploring and investing in sectors poised for growth in the Indian market.
