Nikhil Kamath, Manyavar Family Office In Fray To Invest In Rare Rabbit

Men’s apparel and fashion brand Rare Rabbit, which is nearing close of its first institutional funding round of INR 500 Cr led by A91 Partners, will likely see participation from the family office of Ravi Modi, founder of Vedant Fashions, which runs the ethnic fashion brand Manyavar, and Zerodha’s cofounder Nikhil Kamath.

As per ET’s report, citing people close to the matter, Manyavar family office and Kamath are expected to collectively invest around INR 150 Cr, while A91 will infuse the remaining INR 350 Cr.

The transaction will involve about INR 250 Cr in primary capital being injected into the company, with the remaining amount coming from a secondary share sale by the husband-wife duo, Akshika and Manish Poddar.

Rare Rabbit’s valuation is pegged at INR 2,200 Cr, sources told ET. Having been bootstrapped until now, it has emerged as one of the most talked-about direct-to-consumer (D2C) brands in the fashion segment.

Rare Rabbit recorded revenue of over INR 600 Cr in fiscal 2024, with an operating profit exceeding INR 100 Cr. This represents more than 60% year-on-year growth, as the company reported INR 376 Cr in operating revenue for FY23.

Founded in 2015, Rare Rabbit is part of the Bengaluru-based Radhamani Textiles. The House of Rare, which owns Rare Rabbit, also includes the premium women’s fashion brand Rareism and everyday wear brand Article.

Previously, Radhamani Textiles was an apparel manufacturer primarily focused on export markets, supplying fashion products to major brands, including global entities like Inditex, the European fast fashion group that owns Zara.

The men’s fashion brand operates around 135 physical stores and plans to expand after its first round of funding.

D2C menswear brand has been attracting a lot of investors’ traction for quite some time now.

For instance, earlier this month, Bengaluru-based D2C menswear brand DaMENSCH raised INR 21.62 Cr in an extended Series B round from its existing investors Matrix Partners, Saama Capital, Whiteboard Capital, and A91 Emerging Fund.