Men's apparel and fashion brand Rare Rabbit is all set to close its institutional funding round, as per a report by the Economic Times. The round, worth Rs 500 crore, is led by a VC fund, A91 Partners.
The family office of Vedant Fashions creator Ravi Modi, who also co-founded Zerodha with Nikhil Kamath and is the is the owner of the ethnic fashion company Manyavar, would be participating in the fund-raising. Together, they are probably going to invest about Rs 150 crore. It's anticipated that A91 will contribute the final Rs 350 crore.
Manish and Akshika Poddar founded Rare Rabbit in 2015 as a division of the House of Rare with the goal of introducing formal clothing for men who desired to go beyond the conventional office wear of white and gray and instead experiment with colors and trends.
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The company has expanded over the years and now sells a variety of clothing items, including coats, pants, jeans, suits, blazers, and shirts and t-shirts. It opened its first location in Bengaluru and currently operates more than 100 locations around India.
While the primary capital will be around Rs 250 crore, the rest will be a secondary share of capital, which will be held by Akshika and Manish Poddar, says the report. The report adds that the company's valuation is pegged at Rs 2,200 crore.
Rare Rabbit and Tata Capital also had negotiations last year, but the Tata group's financial services division withdrew from the competition to acquire a share in the business. At a $300 million valuation, Tata Capital sought to acquire about 13 percent of the luxury domestic fashion brand Rare Rabbit.
As per the report, in fiscal year 2024, Rare Rabbit generated over Rs 600 crore in sales and over Rs 100 crore in operating profit. The company, which reported operating revenue of Rs 376 crore for FY23, saw a gain of over 60 per cent year over year with this topline figure.
