Rare Rabbit Nets INR 50 Cr From A91 Partners

D2C fashion brand Rare Rabbit has raised INR 50 Cr (around $5.7 Mn) from existing backer A91 Partners. This is the second tranche of its larger INR 500 Cr (around $57.5 Mn) funding round.

In June last year, the startup raised INR 150 Cr (around $18 Mn) from A91 Partners, Nikhil Kamath’s investment firm Gruhas and Ravi Modi’s family trust (promoter of Manyavar) among others.

According to the company’s regulatory filing, the board of directors approved the allotment of 23,073 shares at the price of INR 21,670 each, totalling to about INR 50 Cr. 

“…the consent of the board of directors of the company is hereby accorded for allotment of 23,073 (Twenty Three Thousand Seventy-Three) 0.0001% Compulsorily Convertible Preference Shares CCPS (“CCPS”) of face value INR 100 each at a premium of INR 21,570 per CCPS, for an aggregate consideration of INR 49,99,91,910, subject to the receipt of subscription money from the allottee,” the filing said. 

This comes after the company raised its authorised share capital in January, citing the need for funds to support expansion and working capital requirements.

Notably, after the funding round, A91 Partners’ stake in the company has now stood at 14.17% compared to 9.65% in its previous round.

Including the last funding, the startup has now raised INR 200 Cr in total. Previously reports said that the company was eyeing for INR 250 funding in a primary round while INR 250 Cr in a secondary deal where the founders will offload their 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 69% year-on-year (YoY) to INR 637 Cr in the financial year 2023-24 (FY24), while net profit doubled to INR 74.5 Cr. 

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