Rare Rabbit Achieves 69% Surge in FY24 Revenue, Crosses Rs 600 Crore Mark

• ByStartupStory     |    October 25, 2024

Homegrown premium fashion label Rare Rabbit reported an impressive 69% jump in its operating revenue for the fiscal year ending March 2024, reaching Rs 637 crore. This milestone marks the first time the brand has surpassed the Rs 600 crore mark. Owned by Bengaluru-based Radhamani Textiles, Rare Rabbit’s robust growth comes on the heels of its first external funding round this year, solidifying its position in the competitive premium fashion market.

According to the company’s financial statements, sourced from Tofler, Rare Rabbit’s net profit more than doubled year-on-year, growing to Rs 75 crore in FY24 compared to Rs 32 crore in FY23. These figures underscore Rare Rabbit’s resilience and growth during a period when many other established brands faced headwinds due to a slowdown in consumer spending. For example, Aditya Birla Fashion & Retail’s lifestyle segment, which houses well-known brands like Louis Philippe, Allen Solly, Van Heusen, and Simon Carter, saw a slight revenue decline of 1% from FY23, totaling Rs 6,560 crore for FY24.

In May, Rare Rabbit closed its maiden institutional funding round of Rs 500 crore, with participation from A91 Partners, Zerodha cofounder Nikhil Kamath, and the family office of Ravi Modi, founder of Vedant Fashions (parent company of ethnic brand Manyavar). The funding round valued the company at around Rs 2,600 crore.

Founded in 2015 by the husband-wife duo Akshika and Manish Poddar, Radhamani Textiles also owns Rareism, a women’s brand, and Articale, a brand catering to everyday wear. Initially focused on manufacturing apparel for export markets, Radhamani supplied to major global fashion labels, including Inditex, the parent company of Zara, before shifting focus to launch its own brands. Manish Poddar currently serves as the creative director of Rare Rabbit, while Akshika Poddar oversees Rareism.

In FY24, Rare Rabbit incurred a total expenditure of Rs 542 crore, a 60% increase from the previous year, with Rs 92 crore dedicated to advertising—a 46% jump. The brand reported an EBITDA of Rs 117 crore, a notable increase from Rs 51 crore in FY23.

The brand’s expansion strategy focused primarily on offline retail, with a notable increase in its store footprint. Rare Rabbit now operates more than 150 stores across India, including key locations in tier-II and tier-III cities such as Ahmedabad, Bhopal, Dehradun, Ranchi, Guwahati, and Vijayawada, in addition to major metropolitan areas like Delhi, Bengaluru, Mumbai, Hyderabad, and Chennai.

With a growing offline presence, Rare Rabbit has emerged as a strong competitor to established players like Aditya Birla Fashion & Retail’s Louis Phillippe, Tommy Hilfiger (operated by Arvind Ltd in India), and Marks & Spencer (run by Reliance Retail), as well as new-age brands like Bombay Shirt Company, which is backed by Singularity Growth and CaratLane founder Mithun Sacheti.

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