Premium fashion brand Rare Rabbit has secured ₹50 crore (approximately $6 million) in funding from existing investor A91 Partners. This investment comes seven months after the company's previous ₹150 crore funding round in June 2024.
Key Highlights
- Investment Details: Radhamani Textiles Pvt Ltd, the parent company of Rare Rabbit, allotted 23,073 shares at ₹21,670 each to raise ₹50 crore. Post-transaction, A91 Partners' stake in the company increased from 9.65% to 14.17%.
- Valuation: The funding was executed at a flat valuation of $279 million for the Bengaluru-based company.
- Financial Performance: Rare Rabbit reported a 69% revenue growth, from ₹376 crore in FY23 to ₹636 crore in FY24. Profits more than doubled, reaching ₹74.6 crore in FY24, up from ₹32.2 crore in FY23.
- Product Portfolio: Operating under The House of Rare, the brand offers premium men's apparel through Rare Rabbit, women's fashion via Rareism, and children's clothing under Rare Ones.
- Market Presence: With over 100 stores across India, Rare Rabbit also retails its collections online, catering to a diverse customer base.
- Competitive Landscape: The brand competes with other apparel companies such as The Souled Store, Snitch, and WROGN.
Our Opinion on the News
Rare Rabbit's continued financial backing from A91 Partners signifies strong investor confidence in the brand's growth trajectory and market strategy. The substantial increase in revenue and profits underscores the company's robust business model and effective market penetration. As the Indian fashion retail sector becomes increasingly competitive, this infusion of capital will likely empower Rare Rabbit to further enhance its product offerings, expand its retail footprint, and solidify its position in the premium apparel market.