According to sources, Rare Rabbit generated over Rs 600 crore in revenue and an operational profit of more than Rs 100 crore in fiscal 2024 while being bootstrapped. In addition to Rare Rabbit, Radhamani Textiles, the brand’s parent company, owns women’s premium fashion brand Rareism and everyday wear brand Articale.

Nikhil Kamath

Rare Rabbit, a new-age men’s apparel and fashion business, is finalizing its first institutional funding round of Rs 500 crore, headed by investment fund A91 Partners, according to numerous sources.

The family office of Ravi Modi, founder of Vedant Fashions, which owns ethnic apparel brand Manyavar, and Zerodha cofounder Nikhil Kamath will participate in the fundraiser. They are expected to invest approximately Rs 150 crore collectively.

A91 is scheduled to invest the remaining Rs 350 crore.

According to persons familiar with the transaction, the company will receive approximately Rs 250 crore in initial capital, with the remaining amount coming via a secondary share sale by the husband-wife team of Akshika and Manish Poddar.

Rare Rabbit is valued at Rs 2,200 crore, according to these people. Until date, the firm has been bootstrapped and is one of the most popular direct-to-consumer (D2C) brands to emerge in the fashion industry.

Rare Rabbit had discussions with Tata Capital last year, but those deals fell through, according to sources familiar with the matter.

According to one of the sources listed above, Rare Rabbit generated approximately Rs 600 crore in revenue in fiscal 2024, with an operating profit of more than Rs 100 crore. The topline result represents more than 60% year on year increase for the company, which earned Rs 376 crore in operating revenue in FY23.

Rare Rabbit was founded in 2015 and is owned by Bengaluru-based Radhamani Textiles. In addition to its flagship Rare Rabbit, the House of Rare owns the premium women’s fashion brand Rareism and the everyday wear brand Articale.

Radhamani Textiles was previously a garment producer with a strong focus on export markets. The company offered fashion products to major companies, including worldwide ones such as Inditex, the European quick fashion conglomerate behind Zara.

According to a senior fashion industry executive located in Gurugram, this company is unique in that it not only focuses on manufacturing but also on building a strong brand.

Manish is the creative director of Rare Rabbit, while Akshika oversees the Rareism label.

The omnichannel men’s fashion brand now has approximately 135 physical stores and intends to aggressively grow following its initial round of funding.