Rare Rabbit, the new-age fashion brand, has secured a significant investment of Rs 150 crore (approximately $18 million) in primary capital. The funding round was led by A91 Partners, marking the company’s first institutional investment since its inception in 2015. Rare Rabbit’s board passed a special resolution to issue 69,230 compulsory convertible preference shares at an issue price of Rs 21,670 each, resulting in the substantial capital infusion. Notably, Zerodha’s founders, NKSquared, also contributed Rs 29 crore to the funding, alongside Gruhas Proptech, Ravi Modi Family Trust, and Vendant Modi.
The Valuation and Stake Distribution
Following this funding, Rare Rabbit’s estimated valuation stands at approximately Rs 2,350 crore ($283 million). The A91 emerging fund will hold 9.65% of the company’s capital, while NKSquared and Ravi Modi Family Trust will own 4.15% and 2.13% of the stake, respectively. This investment is part of a larger round, as Rare Rabbit was reportedly in discussions to raise Rs 500 crore, with A91 Partners leading the way.
Rapid Growth and Market Position
Rare Rabbit, known for its high-end designer clothing for both men and women, has demonstrated impressive growth. In FY23, the company’s revenue surged by 72.3% to reach Rs 381 crore, accompanied by a positive bottom line of Rs 32 crore.
The brand’s upward trajectory continued, with reported revenues of Rs 600 crore in FY24. Competing with brands like Souled Store, which raised $29 million and achieved a revenue of Rs 235 crore in FY23, Rare Rabbit has solidified its position in the fashion landscape. Other competitors, such as Snitch and WROGN, also secured significant funding in late 2023 and mid-2024, respectively.
Comments