D2C Fashion Brand Rare Rabbit Bags INR 150 Cr From A91 Partners, Nikhil Kamath’s Gruhas

After months of speculation, D2C fashion brand Rare Rabbit has received the first tranche of its INR 500 Cr investment. According to the startup’s regulatory filing, it received an investment of INR 150 Cr (about $18 Mn) from A91 Partners, Nikhil Kamath’s investment firm Gruhas, Ravi Modi’s family trust (promoter of Manyavar), among others. 

According to Inc42 estimates, the startup raised the funding at a pre-money valuation of INR 2,200 Cr (about $264 Mn).

It was first reported last month that Rare Rabbit was looking to raise INR 500 Cr in its maiden funding round. The funding round was said to be led by A91 Partners and see participation from the family office of Ravi Modi, founder of Vedant Fashions (which runs the ethnic fashion brand Manyavar), and Zerodha cofounder Nikhil Kamath.

As per the reports, the funding round would involve a primary infusion of INR 250 Cr. The remaining amount was to involve a secondary transaction, in which husband-wife duo Akshika and Manish Poddar would sell shares. 

Founded in 2015 by Manish and Akshika Poddar, The House of Rare operates Rare Rabbit, women’s fashion wear brand Rareism, and everyday wear brand Articale.

The startup’s operating revenue jumped 77% year-on-year (YoY) to INR 376 Cr in the financial year 2022-23 (FY23), while net profit grew 84% to INR 32.2 Cr. Total expenditure stood at INR 338.7 Cr during the year, an increase of 72% from INR 196.6 Cr in FY22. 

As per reports, the startup clocked a revenue of INR 600 Cr in FY24. It is yet to file its financial results for the year with the Ministry of Corporate Affairs. 

House of Rare competes against new-age D2C fashion brands like Bombay Shirt Company, Snitch, Damensch, and The Souled Store.