Rare Rabbit Secures INR 150 Crore Funding from Gruhas, A91 Partners, and Ravi Modi’s Family Office

• ByStartupStory     |    June 29, 2024

Indian direct-to-consumer (D2C) fashion retailer Rare Rabbit has announced that it has received an initial investment of INR 150 Crore out of the planned INR 500 Crore funding round. This round was led by Nikhil Kamath’s investment firm Gruhas, Mumbai-based A91 Partners, and the family office of Vedant Fashion Founder Ravi Modi, among other investors.

The substantial investment follows recent speculation regarding Rare Rabbit’s intent to secure INR 500 Crore in funding. According to Inc42, the funding structure includes a primary influx of INR 250 Crores, with the remaining amount designated for secondary transactions. These transactions involve co-founders Akshika Poddar and Manish Poddar selling shares.

Data from Tracxn reveals that House of Rare and Rare Rabbit, subsidiaries of Radhamani Textiles Private Limited, reported a combined revenue of INR 381 Crore for the fiscal year 2022-23. The company also announced a net profit of INR 32.2 Crore for FY2022-23, marking an impressive 84% increase from the previous fiscal year.

In the highly competitive D2C fashion market, Rare Rabbit stands alongside brands such as Damensh, Styched, Freakins, Beyoung, Bewakoof, French Connection, and MAF Clothing, as well as international brands like Marks & Spencer.

Rare Rabbit’s journey began in 2015 with the opening of its first retail outlet in Bengaluru’s ultra-premium UB City mall. Since then, House of Rare has expanded its footprint across major metropolitan areas and lower-tier cities, including Bhopal, Dehradun, and Alappuzha in Kerala.

The brand is known for its bold designs and departure from conventional men’s clothing patterns. Co-founder Manish Poddar previously stated in an interview with ET, “Shirts evolved from plain solids to tactile textures; checks evolved with new age colors; and micro floral prints are bigger and bolder. The new-age menswear brands are mushrooming with an array of smart prints.”

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