What Does Nikhil Kamath’s Involvement Mean for Rare Rabbit’s Future Growth?

Emerging men’s apparel and fashion label, Rare Rabbit, is purportedly finalizing its inaugural institutional funding cycle amounting to Rs 500 crore.

As per a report by ET, this funding initiative is spearheaded by A91 Partners, a renowned investment fund, and involves contributions from the family office of Ravi Modi, the visionary behind Vedant Fashions, the parent company of ethnic fashion brand Manyavar, as well as Nikhil Kamath, the co-founder of Zerodha.

Investment Breakdown:

In this round of investment, A91 Partners is set to inject Rs 350 crore, with Ravi Modi’s family office and Nikhil Kamath jointly committing the remaining Rs 150 crore.

Of the total transaction, about Rs 250 crore will serve as primary capital infusion for Rare Rabbit, while the remaining Rs 250 crore will be allocated for a secondary share sale by Akshika and Manish Poddar, the entrepreneurial duo behind the brand.

Rare Rabbit’s Financial Performance and Growth

Rare Rabbit, valued at approximately Rs 2,200 crore, has emerged as a leading direct-to-consumer (D2C) brand within the fashion sector.

As a bootstrapped startup, Rare Rabbit has delivered impressive financial outcomes in fiscal 2024. With revenues surpassing Rs 600 crore and operating profits exceeding Rs 100 crore, the company has achieved remarkable year-on-year growth, exceeding 60% compared to the operating revenue of Rs 376 crore reported in fiscal 2023.

Furthermore, Rare Rabbit demonstrated a net profit of Rs 32 crore for fiscal 2023, underscoring its robust financial performance and sustainable growth trajectory.

How Will the Investment Impact Rare Rabbit’s Expansion?

Rare Rabbit, operating under Bengaluru-based Radhamani Textiles, currently boasts approximately 135 physical outlets and anticipates a significant expansion of its retail network post-funding.

Spanning across metro hubs like Delhi, Bengaluru, Mumbai, Hyderabad, and Chennai, as well as tier-II and tier-III cities including Ahmedabad, Bhopal, Dehradun, Ranchi, Guwahati, and Vijayawada, the company’s stores cater to diverse markets.

This fresh injection of capital will empower Rare Rabbit to augment its brick-and-mortar presence, facilitating sustained growth within the premium men’s fashion niche.