Rare Rabbit raises ₹50 crore for premium apparel expansion

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Rare Rabbit, a premium fashion brand under the parent company Radhamani Textiles Private Limited, has secured ₹50 crore from existing investor A91 Partners. This latest investment values the company at $279 million. A91 Partners has increased its stake from 9.65% to 14.17% in Rare Rabbit, solidifying its confidence in the brand’s growth trajectory. The company had previously raised ₹150 crore in June 2024, backed by A91 Partners, NkSquared (supported by Zerodha co-founder Nikhil Kamath), Gruhas, and Ravi Modi’s family trust.

Rare Rabbit has gained prominence in the Indian fashion market with a strong omnichannel presence. With over 100 stores nationwide and an expanding digital footprint, the brand is a direct competitor to Wrogn, Snitch, and The Souled Store. Rare Rabbit recorded an impressive 69% revenue growth in FY24, rising from ₹376 crore in FY23 to ₹636 crore in FY24, with profits surging over twofold to ₹74.6 crore. This investment is expected to fuel further expansion and strengthen its market leadership in the premium apparel segment.

1. Understanding Rare Rabbit: A Premium Fashion Brand

1.1 Business Model and Revenue Strategy

Rare Rabbit operates on an omnichannel retail model, combining offline and online sales channels to reach a broad customer base. The brand targets urban professionals and fashion-conscious consumers who seek premium apparel with a distinct aesthetic. With strategic store placements in high-footfall locations and a strong digital presence, Rare Rabbit ensures accessibility to its products.

Revenue is primarily generated through direct sales from its retail outlets, e-commerce platforms, and collaborations with third-party marketplaces. The brand follows a high-margin pricing strategy, leveraging its premium positioning and quality craftsmanship to justify its price points.

1.2 Founders and Their Vision

Rare Rabbit was founded in 2015 by Manish Poddar and Akshika Poddar under the House of Rare umbrella. The duo envisioned a premium apparel brand that blends European aesthetics with Indian craftsmanship. Their experience in textiles and fashion design has played a crucial role in establishing Rare Rabbit as a distinctive brand in India’s competitive fashion landscape.

1.3 Product Offerings and Market Presence

Rare Rabbit primarily focuses on men’s fashion, but it has expanded its portfolio to include women’s wear (Rareism) and children’s apparel (Rare Ones). The company currently operates over 100 retail stores across major cities in India, along with a robust online presence. This extensive network allows the brand to cater to the growing demand for premium fashion.

2. Rare Rabbit’s Funding History and Growth

2.1 Recent Funding Round and Investor Confidence

In February 2025, Rare Rabbit raised ₹50 crore from existing investor A91 Partners. The investment was made at a valuation of $279 million, with A91 Partners acquiring an additional stake of 4.52%, increasing its total shareholding to 14.17%.

This round follows the ₹150 crore funding secured in June 2024 from A91 Partners, NkSquared, Gruhas, and Ravi Modi’s family trust. The continuous investor interest reflects Rare Rabbit’s strong business fundamentals and growth potential in India’s premium apparel segment.

2.2 Financial Performance and Expansion Strategy

Rare Rabbit has demonstrated remarkable growth, with revenue soaring from ₹376 crore in FY23 to ₹636 crore in FY24. The company’s net profits more than doubled to ₹74.6 crore in FY24, highlighting operational efficiency and strong consumer demand.

The brand’s expansion strategy includes increasing retail outlets, enhancing digital sales, and strengthening supply chain operations to meet growing demand. By investing in high-quality materials and innovative designs, Rare Rabbit continues to position itself as a leading premium fashion brand in India.

3. Competition and Market Landscape

3.1 Competing Brands in India’s Premium Fashion Segment

Rare Rabbit faces stiff competition from established brands like:

• Wrogn: Backed by Aditya Birla’s TMRW House of Brands, Wrogn secured ₹125 crore in funding in June 2024.
• Snitch: Raised ₹110 crore in a Series A round in December 2023.
• The Souled Store: Generated ₹355 crore revenue in FY24 after raising $30 million.

Despite the competition, Rare Rabbit’s brand loyalty, high-quality designs, and strong market positioning give it a competitive advantage.

4. Learning for Startups and Entrepreneurs

4.1 Key Takeaways from Rare Rabbit’s Success

1. Omnichannel Presence is Key: Brands must integrate offline and online channels to maximize reach and sales.
2. Consistent Investor Backing is Crucial: Attracting and maintaining investor confidence ensures steady growth.
3. High-Quality Offerings Drive Premium Pricing: Superior design and craftsmanship allow brands to justify higher price points.
4. Strategic Expansion Matters: Carefully selecting store locations and digital platforms can boost brand visibility and revenue.
5. Financial Discipline is Essential: Strong profit margins and operational efficiency are key for sustainable growth.

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