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Rs 500 Crore Windfall: Rare Rabbit Sets a New Benchmark with Nikhil Kamath

Rare Rabbit Secures Rs 500 Crore in Landmark Funding Round, Aiming to Redefine Men's Fashion!

21 May 2024

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Neelesh Bachani

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1.      Rare Rabbit, a prominent men’s apparel and fashion brand, is closing its first institutional funding round of Rs 500 crore, led by A91 Partners with contributions from Ravi Modi of Manyavar and Nikhil Kamath of Zerodha. The investment, which includes Rs 250 crore as primary capital and a secondary share sale, values the company at Rs 2,200 crore.


2.      Rare Rabbit reported a revenue of over Rs 600 crore in fiscal 2024, up more than 60% from Rs 376 crore in FY23, with an operating profit exceeding Rs 100 crore. This growth is attributed to the premiumization trend in men’s fashion, benefiting segments like formal wear, casual shirts, denim, and trousers.


3.      Established in 2015 under Radhamani Textiles, Rare Rabbit plans to expand aggressively with the new funding. The brand, which operates 135 stores, aims to penetrate Tier-II and Tier-III cities and further develop metro areas, positioning itself alongside competitors like Louis Phillippe, Tommy Hilfiger, and Marks and Spencer.

Rare Rabbit, a new-age men’s apparel and fashion brand is set to close its first-ever institutional funding round of Rs 500 crore. This significant investment round is led by A91 Partners, with notable contributions from Ravi Modi of Manyavar and Nikhil Kamath, co-founder of Zerodha. According to The Economic Times, this round marks a pivotal moment for Rare Rabbit, which has been self-funded up until now.

 

The funding round includes a collective contribution of around Rs 150 crore from Modi's family office and Kamath, with A91 Partners providing the remaining Rs 350 crore. Of the total Rs 500 crore, approximately Rs 250 crore will serve as primary capital for the company. The balance amount will be a secondary share sale by Akshika and Manish Poddar, the husband-wife team behind Rare Rabbit. This substantial investment values the company at an estimated Rs 2,200 crore.

 

Rare Rabbit has shown a remarkable growth trajectory, reporting a revenue of over Rs 600 crore in fiscal 2024, with an operating profit surpassing Rs 100 crore. This represents a significant increase compared to FY23's revenue of Rs 376 crore, reflecting a year-on-year revenue surge of over 60%. Industry insiders attribute this growth to the rising trend of premiumization in the men’s fashion sector, which has driven substantial revenue gains for premium brands in formal wear, casual shirts, denim, and trousers.

 

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Established in 2015 under Radhamani Textiles, Rare Rabbit initially focused on manufacturing apparel for global giants like Zara before venturing into its brand. Alongside Rare Rabbit, the company has developed other brands, including the premium women’s fashion brand Rareism and the everyday wear brand Article, under the House of Rare. Manish Poddar serves as the creative director for Rare Rabbit, while Akshika Poddar oversees Rareism, contributing to the brand's success.

 

Rare Rabbit currently operates around 135 physical stores and plans for aggressive expansion following the funding. The expansion strategy will focus on penetrating Tier-II and Tier-III cities, alongside further development in metro areas. This move is expected to bolster the brand's market presence and reach a wider customer base, solidifying its position in the competitive fashion industry.

 

In the competitive landscape, Rare Rabbit stands alongside established players such as Louis Phillippe, Tommy Hilfiger, and Marks and Spencer, all of which have shown strong revenue figures. With the new funding and strategic expansion plans, Rare Rabbit aims to further strengthen its foothold in the premium men’s fashion market, leveraging its innovative designs and robust brand identity.

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