A91 Partners along with Ravi Modi of Manyavar and Nikhil Kamath, co-founder of Zerodha, participated in a reported Rs. 500 crore investment round in Rare Rabbit, a contemporary man’s apparel and fashion brand. This symbolises Rare Rabbit’s first institutional funding round.
A91 Partners directs the investment, with Modi’s family office and Kamath expected to jointly invest around Rs. 150 crore, leaving the left over Rs. 350 crore from A91. The transaction involves around Rs. 250 crore as principal capital inflow, with Akshika and Manish Poddar, the husband-wife duo following Rare Rabbit, carrying out a secondary share sale.
Valued at a projected Rs. 2,200 crore, Rare Rabbit, earlier self-funded, comes as a distinguished direct-to-consumer (D2C) brand in the fashion sector. Even with the earlier negotiations with Tata Capital for funding not concretising , Rare Rabbit reports notable fiscal 2024 revenues surpassing Rs 600 crore, with an operating profit exceeding Rs. 100 crore.
This indicates an extraordinary growth trajectory, with revenue rolling over 60 per cent year-on-year in comparison to FY ’23. The rush in premiumisation has been an important growth catalyst for men’s fashion, with premium brands experiencing siseable revenue growth in areas like formal wear, denims, casual shirts, and trousers.
Set up in 2015 under Radhamani Textiles in Bengaluru, Rare Rabbit shifted from apparel manufacturing for global giants such as Zara to creating its own brand. Rare Rabbit, besides Rareism and Articale, materialised as flagship offerings under the House of Rare, with around 135 physical stores presently operational. Post-funding, aggressive expansion plans are in progress, aiming at Tier-2 and Tier-3 cities along with metro areas.
Amidst competition from well-known players such as Louis Phillippe, Marks and Spencer and Tommy Hilfiger; Rare Rabbit continues to display promising revenue figures.
