Rare Rabbit is a D2C fashion brand that secured Rs 150 crore ($18 million) as the first tranche of its Rs  500 crore investment. The firm raised $18 million in a round led by an investment firm Gruhas, A91  Partners, and Ravi Modi’s family trust, among others. Inc42 estimated that this funding round was held  at a pre-money valuation of $264 million. 

The firm planned to secure Rs 500 crore through its maiden funding round led by A91 Partners. The  round had participation from Ravi’s family office, Zerodha co-founder Nikhil Kamanth, and Founder of  Vedant Fashions. The funding round will see a primary fusion of Rs 250 crore and the remaining  investment will be carried out in a second transaction. The second tranche will have major  participation from husband-wife duo Manish Poddar and Akshika, in which they will sell shares. The  company plans to use these fresh proceeds to enhance its platform for better user experience, market  expansion, scale its operations, and general corporate purposes.  

This D2C fashion startup, Rare Rabbit is a part of “the house of rare” and offers fashion wear and everyday wear  brands. The company aims to provide its wearer with various personalities in a clothing brand. The  startup claims to provide a fashionable, bold, modern, and emotional collection of ethnic and fashion wear created by integrating them with current fashion trends worldwide. The brand competes with  other D2C fashion startupsincluding Snitch, The Souled Stone, Bombay Shirt Company, and Damensch. 

Rare Rabbit reported a 77 percent year-on-year increase in its operating revenue to Rs 376 crore, while  the net profit jumped by 84 percent to Rs 32.2 crore in FY23. The total expenditure also increased by  72 percent to Rs 338.7 crore during the same duration. The company mentioned a revenue of Rs 600  crore for this fiscal year and is expecting to see an increase in FY25. The fashion e-commerce market  is expected to reach over the $112 billion mark in the next five years. Earlier, this year a D2C fashion  ethnic startup, Libas secured Rs 150 crore in a funding round led by ICICI Ventures. A known fashion  brand Meesho also closed its first funding round at $275 million. 

Conclusion: 

D2C fashion startup, Rare Rabbit managed to secure Rs 150 crore at a pre-money valuation of $264  million. The firm raised $18 million in a round led by an investment firm Gruhas, A91 Partners, and  Ravi Modi’s family trust, among others. The company plans to use this fund to enhance its platform for  better user experience, scale up operations, and general corporate purposes while aiming for  expansion in the fashion market. The funding round will see a primary fusion of Rs 250 crore and the  remaining investment will be carried out in a second transaction via Manish Poddar and Akshika selling  their shares. Rare Rabbit claims to provide a fashionable, bold, modern, and emotional collection of  ethnic and fashion wear created by integrating them with current fashion trends worldwide.