A91 Partners, a venture capital firm, is expected to invest about US $ 50 million in Rare Rabbit, a premium menswear business that has been active for nine years, with a valuation of about US $ 330 million. At this point in the talks, which are advanced, the venture company would acquire a fifteen percent ownership in the start-up.
According to reports, the negotiations have been ongoing since the start of the year. The apparel company was also in discussions for fundraising of a comparable amount at a US $ 300 million value at roughly the same time with Tata Capital. However, the deal, which was in the stages of due diligence, fell through. Reliance Retail reportedly considered purchasing a significant part in the brand as well, but they decided the valuations were too high.
There was no response from Tata Capital to an email seeking clarification. In response, a Reliance Retail representative stated, “We do not comment on media speculation and rumours as a policy.”
Manish and Akshika Poddar, the creators of Rare Rabbit, were not available for comment. Messages were not returned by A91 Partners’ senior executives.
In order to provide formal attire for men who wished to experiment with colours and styles instead of the conventional whites and greys that were typical office wear, the Poddars founded Rare Rabbit in 2015 as a member of the House of Rare. “The brand celebrates the side of men who breaks all the preconceived notions of what a man should and is expected to be,” reads the website blurb. The company has expanded over the years and now sells a variety of clothing items, including coats, pants, jeans, suits, blazers and shirts and T-shirts.
It opened its first location in Bengaluru and currently operates more than 100 locations around India. Its female equivalent is a brand known as “Rareism.” Under Radhamani Textiles, both brands are present. Based on statistics from Tracxn, it recorded a net profit of Rs. 32.2 crore for FY ’23, up over 70 per cent year over year, while revenue increased by 74 per cent to Rs. 381 crore.
