Nikhil Kamath and Manyavar Family Office to Join A91 Partners in Rare Rabbit’s ₹500 Crore Funding Round

New-age men's fashion brand Rare Rabbit is making waves in the industry with its impressive growth and strategic funding round. The Bengaluru-based company is poised to become a major player in the premium menswear segment, attracting investments from leading figures like A91 Partners, the family office of Ravi Modi (founder of Manyavar), and Zerodha co-founder Nikhil Kamath.

Rs 500 Crore Funding Round:

Rare Rabbit is close to securing a Rs 500 crore investment in its maiden institutional funding round. This capital infusion will propel the brand's growth and expansion plans.

Strong Financials:

Despite being bootstrapped until now, Rare Rabbit boasts impressive financials. The company recorded over Rs 600 crore in revenue for FY24, with an operating profit exceeding Rs 100 crore. This reflects a significant 60% year-on-year growth.

Premiumization Trend:

Rare Rabbit's success aligns with the growing demand for premium menswear in India. Consumers are increasingly seeking high-quality, stylish clothing beyond traditional formal wear. This trend is driving growth across casual shirts, denims, and trousers in the premium segment.

Omnichannel Strategy:

The brand leverages both online and offline channels to reach its customers. It currently operates around 135 physical stores across India, with plans for aggressive expansion post-funding. This strategy caters to the diverse preferences of modern shoppers.

Strong Leadership:

The husband-wife duo of Akshika and Manish Poddar are the creative force behind Rare Rabbit. Manish serves as the creative director, while Akshika manages the sister brand Rareism. Their combined expertise positions the company for continued success.

Industry Benchmark:

Rare Rabbit's impressive growth trajectory places it alongside established premium menswear brands like Louis Phillippe (revenue of Rs 2,500 crore) and Tommy Hilfiger (revenue of Rs 1,000-1,200 crore). The brand's performance is even more noteworthy considering the slowdown experienced by several fashion brands in FY24.

With its strong financials, strategic funding round, and omnichannel approach, Rare Rabbit is well-positioned to capitalize on the growing premium menswear market in India. The company's aggressive expansion plans and focus on tier-II and tier-III cities indicate its commitment to reaching a wider customer base. This investment round is likely to be a game-changer for Rare Rabbit, solidifying its position as a leading player in the Indian fashion landscape.