Rare Rabbit is concluding a Rs 500 crore funding round

Apparel brand Rare Rabbit is closing its first institutional funding round of Rs 500 crore, led by the A91 Partners investment fund. The transaction will also include a secondary share sale and approximately Rs 250 crore of fresh capital is expected to be infused into the business out of the Rs 500 crore total.

Along with A91 Partners, other investors expected to participate in Rare Rabbit’s funding round include Zerodha’s co-founder Nikhil Kamath and ethnic wear brand Manyavar’s parent company Vedant Fashions’ founder Ravi Modi among others, the Economic Times reported. The business’ founder Manish Poddar and his wife Akshika Poddar will also hold a secondary share sale as part of the funding round.
 
Rare Rabbit’s current valuation sits at around Rs 2,200 crore and the business has been bootstrapped to date. The direct to customer brand retails from its e-commerce store and its growing number of 135 brick-and-mortar outlets in India’s main cities and several up and coming locations such as Bhopal and Ranchi.  
 
“Most companies either focus on manufacturing or creating a successful brand,” a Gurugram based fashion industry executive told ET Tech. “This is a ‘rare’ example of a company doing both.”
 
Rare Rabbit is part of the House of Rare which is owned by Radhamani Textiles and also includes the brands Rareism and Articale. The brands have a modern, relaxed style designed to appeal to millennial and Gen Z shoppers.